LESSON 01 ~8 MIN · AT YOUR OWN PACE
Getting started with trading
Trading, investing, Profit and Loss. Get the big picture first.
STEP 3 OF 4
The difference between trading and investing
Trading focuses on short or medium-term price movement. Investing may focus on the growth or income of an asset held for a long time. Both carry risk; a longer time does not mean you cannot lose.
AN EXAMPLE
Buying and selling a share within a few days is an example of trading. Understanding a company and holding its shares for years is an example of investing.
RememberKnow not only what you buy, but also why you buy it and how long you will hold it.
Sources and further reading
Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.
Investor.gov · Stocks (opens in a new tab)FINRA · Day trading risks (opens in a new tab)