What is the difference between online investing and trading?
Investors purchase Stocks, ETFs, Mutual Funds, Commodity Futures, or Options with the intention of holding for an extended period of time, usually several months to years. They rely primarily on fundamental analysis to make their investment decisions. Those investing in stocks consider themselves as co-owners in the companies in which they buy shares. Some investors use options to reduce risk by hedging or leveraging their investments. On the other hand, Traders usually try to profit from short-term price volatility of Stocks, ETFs, or Commodity Futures with trades lasting anywhere from a day to several months. Most traders use use some type of technical analysis in their trading. Some traders use options to reduce risk or leverage their positions.
