Thursday 20 August 2009

Trading Versus Investing

Trading Versus Investing

Not only is technical analysis more short term in nature than fundamental analysis, but the goals of a purchase (or sale) of a stock are usually different for each approach.

In general, technical analysis is used for a trade, whereas fundamental analysis is used to make an investment.

Investors buy assets they believe can increase in value, while traders buy assets they believe they can sell to somebody else at a greater price.

The line between a trade and an investment can be blurry, but it does characterize a difference between the two schools.


http://www.investopedia.com/university/technical/techanalysis2.asp

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