What is the difference between trading and investing in the stock market?
Answers | 3
Most folks will answer this one by using a time constraint.
Digging deeper into this on an individual level:
Trading is like a hobby-as in swapping baseball cards or marbles for some type of advantage
Investing is a way of life like investing in yourself.
As an Investment Manager, we also use a trading strategy as an investment strategy by buying the same company at a low price, selling it at a higher price. Then, repeating this over a long period. To do this requires discipline and a great set of rules (checklist). Most importantly, one needs the ability to understand the intrinsic value of the company you are buying and the limitations of your human ability by using a huge margin of safety.
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It's not what you make, It's what you keep that determines your lifestyle.