Trading vs. Investing Quiz

What is the primary goal of trading?

• Quick profits from market fluctuations

• Long-term wealth accumulation

• Reducing transaction frequency

• Minimizing risk through diversification

Which of the following is a common strategy used in investing?

• Momentum trading

• Day trading

• Swing trading

• Buy and hold

What is the typical timeframe for investing?

• Days or weeks

• Weeks or months

• Months or years

• Years or decades

Which approach is commonly associated with trading?

• Short term trends

• Economic factors

• Dividend investing

• Fundamental Analysis

What is the risk level associated with trading?

• No risk

• Higher risk

• Lower risk

• Moderate risk