What is the difference between stock trading and investing?

Trading is the practice of executing buy and sell trades to capitalize on the price variance. There are two key strategies: active trading and day trading.

An active trader executes 10 or more trades per month capitalizing on trends. Active traders hold positions for a short period of time based on an anticipated target price. A day trader never holds a position overnight – all stocks purchased are sold on the same day. Investing is a long-term strategy

What are the types of stock trading strategies?

There are several different stock trading strategies. Day trading refers to buying and selling stocks in one day. Traders sell stocks the same day, so they never hold a position overnight. Position trading involves buying and holding stock based on anticipated trends. The goal is to identify the market direction based on prediction charts and monitor the trend to capture the apex gain/loss. At the end of a trend, the stock price fluctuates while it establishes a new price. Swing Trading takes advantage of this price volatility period and uses fundamental analysis to determine when to buy and sell.

Scalping is one of the quickest trading strategies for spread advantage. The trader buys at the bid price and sells at the asking price to profit off the differential.

Fading is short selling a stock when the trader believes it has been overbought. A sell trade is executed when the price where the trader builds wealth by holding positions for years. Gains are associated with interest, dividends, or stock splits — these are often reinvested in the same account growing the base investment value.