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Questions and Answers
What is the main difference between investing and trading?
What is the main difference between investing and trading?
- Investors aim to profit from daily market fluctuations, while traders focus on long-term wealth accumulation.
- Investors maximize returns daily, while traders hold their assets for years or decades.
- Investors ride out short-term losses, while traders attempt to make quick profits from fluctuating markets.
- Investors seek larger returns over an extended period, while traders take advantage of short-term market movements. (correct)
What types of assets can be included in an investment portfolio?
What types of assets can be included in an investment portfolio?
- Bonds, cryptocurrencies, ETFs, and derivatives
- Stocks, mutual funds, commodities, and real estate
- Baskets of stocks, mutual funds, bonds, and ETFs (correct)
- Savings accounts, stocks, options, and gold
Which strategy aims to maximize returns daily, monthly, or quarterly?
Which strategy aims to maximize returns daily, monthly, or quarterly?
- Saving
- Speculating
- Trading (correct)
- Investing
What is the primary goal of investing?
What is the primary goal of investing?
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What do traders do in response to fluctuating markets?
What do traders do in response to fluctuating markets?
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