Distinguishing between trading and investing is essential to understanding which tools you need if you are to be successful. Investing is all about the long term. It requires in-depth analysis of the prospects of a share or bond or any other security. If an investor is looking to invest in a company, they would consider the company's long-term prospects. On the other hand, traders are concerned with short-term movements, be they intraday, daily, weekly or monthly. Fundamental analysis underpins long-term investment strategies. If investors are considering buying a particular share, they would look at company fundamentals such as management, past performance, future projects and expansion plans. Investors will also dig into the company's financial statements to find out its intrinsic value. Traders, on the other hand, rely on technical analysis which focuses on the price movement of the security in which they plan to trade. The methodologies employed in technical analysis have come u...

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