| | | >>There is no difference between investing, trading, and speculating<<
There's huge differences.
Investing is buying a company with good fundamentals for a sharing of future profits from their business. Generally plan to hold unless fundamentals change.
Trading is buying something because you think it's going to go up for whatever reason and planning to sell it when it hits a target price. Time frame varies, seconds, minutes, day trading , or days for swing trading
Speculating is buying something hoping it will pop on news, a chance breakthrough (like biotech), merger/buyout, or some indicator like oversold, deviation from VWAP, MA etc Basically no real solid fundamental reason but lots of hope. |
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