{"id":537,"date":"2018-07-28T12:44:17","date_gmt":"2018-07-28T17:44:17","guid":{"rendered":"https:\/\/www.caribbeanvalueinvestor.com\/news\/?p=537"},"modified":"2018-07-30T21:49:54","modified_gmt":"2018-07-31T02:49:54","slug":"what-difference-between-day-trading-investing","status":"publish","type":"post","link":"https:\/\/www.caribbeanvalueinvestor.com\/news\/value-investing-education\/what-difference-between-day-trading-investing\/","title":{"rendered":"What is the difference between Day-Trading and Investing"},"content":{"rendered":"

Day-Trading vs Investing – There is a Difference.<\/h1>\n

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Many first-time investors are drawn to the securities (stocks, commodity, forex etc) market due to the lure of making money. Over what period they can make the most returns will influence their strategy on capital deployment. Two common mechanisms that this capital will be deployed under are Day-trading<\/strong> and Investing<\/strong>.<\/p>\n

Suggested Reading<\/em>: How Value Investor Select Companies to Invest In<\/a><\/strong><\/p>\n

Defining Day-trading<\/strong><\/h2>\n

Simply put, Day Trading<\/strong> is the buying and selling of a security within a single market day (in its strictest sense). It involves taking advantage of gaps between the bid<\/strong> and the asks<\/strong> as well as trading on news<\/em> or financial releases<\/em>. This mechanism is considered to be riskier and therefore generally has a lower success rate. This is due to the speculative nature of the trade. However, if successful profits can be gained in a very short period, and if consistent, these profits can compound over time.<\/p>\n

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