By the definitions, they hold, trading means to hold the given securities over a small period of time, while investing holds the collateral for a longer period. Certain aspects and rules are applicable to both the categories of business to brighten its hold.
Rules for Investment
Do not fear to pay the taxes as not paying them can only put you further into trouble lest the loss-man overtakes you!
Do not make the comfortable error of investing all your money into one pot, it is easy for one dead mosquito to kill your meal!
3) Invest in damaged stocks, not irreparable companies!
Make sure you invest in repairable stocks and not dig in the Street for companies in nowhere lands!
4) Buy expensive companies
Expensive companies hold the lesser chance to doom, so buy them when they are ripe.
5) Diversify your branches
You should always look up to branching diverse as the control of the downside alongside this can only trigger the upside of investment profit!
6) Stock research
Before you jump into buying a stock make sure you do the best of your homework to dig up all aspects of its health.
7) Do not mess up having too many names
As it suggests, too many captains sink a ship, so relieve your headaches by choosing the lesser names of what you really like and focus on branching just that.
8) Using Cash
At the times when you need to use cash use it! For cash, is put to use by the winner who indeed has it in plenty, in the Street!
9) Follow the Captain
Be the chiefs of the company you are buying old or new, if they are retiring in unison and in numbers, it is common sense to sense the wrongth in it.
10) Be a critic to TV
Media has to stir even the graveyards to survive, so believe it just that much!
Rules for Trading
Always have a trading plan consisting of entry, money management and exit with Backtesting and such.
2) Business aspect
Trading should be considered a real business with real loss and profit and not just a hobby.
3) Technologize yourself
Exploit the technology of the day to utilize Backtesting, analyzing, reviewing, market updates and being online all the time with open ears
4) Risk what you can lose
Always keep in mind that trading can incur the loss that can drain the entire money and life out of you. So, think before leaping.
5) Strictly use Stop Loss
Stop Loss determines the loss beforehand for the trader. This limits the loss exposure. Hence, always use it!