Investing and trading are both ways to grow your money by buying and selling financial assets, but they have different goals and timeframes.

Investing is a long-term strategy focused on building wealth gradually. Investors buy assets like stocks, bonds, or mutual funds and hold them for years or even decades. They aim to profit from the overall growth of the asset’s value and from any income it generates, such as dividends from stocks or interest from bonds.

Trading is a short-term approach that tries to capitalize on price movements in the market. Traders buy and sell assets frequently, sometimes within minutes or hours, hoping to profit from small price fluctuations. They focus more on technical analysis, studying charts and market trends, to make their decisions.