What context can I use each word in?
Learn when and how to use these words with these examples!
investing
Example
I am investing in a new startup company that I believe will be successful. [investing: present participle]
Example
My financial advisor recommended investing in mutual funds for my retirement savings. [investing: gerund]
trading
Example
He made a lot of money trading stocks on the stock market. [trading: present participle]
Example
I am trading my old car for a newer model. [trading: present participle]
Good things to know
Which word is more common?
Investing is more commonly used than trading in everyday language, as it is a more common financial activity for individuals and businesses. Trading is more commonly associated with professional traders and investors who engage in high-frequency trading.
Whatโs the difference in the tone of formality between investing and trading?
Investing is generally considered a more formal activity than trading, as it involves long-term financial planning and investment in established companies or projects. Trading can be more informal and speculative, often involving riskier investments and short-term gains.
