INVEST vs TRADE

For all those who enter share market, have a confusion whether to trade or invest. Here we are not going to bet which one is the best but to clear you the pros and cons of both.

Before that just recollect different types of investment(short, medium and long term). One thing which we are not going to deal is about day-trading(needs lot of exposure to stock market)

Let us go with the following examples.

1) Unitech --> Stock Price as on Jan 2006 is Rs. 8/- & as on Jan 2008 is Rs. 500/-

2) Sasken Communications --> Stock Price as on Jan 2006 is Rs. 450/- & as on March 2008 is Rs. 85 /-

3) Infosys Tech --> stock Price as on Jan 2006 is Rs. 1500/- & as on Jan 2008 is Rs. 1400/-

What is your observation?
As a lay man, Unitech is good, Infosys is safe, and Sasken is worst company.
As a professional, Unitech is in uptrend, Infosys is in Sideways trend and Sasken is in downtrend.

Let us come to the interesting second part of the same example.

1) Unitech --> Stock price as on Jan 2008 is Rs. 500/- as on July 2008 is Rs. 160/-

2) Sasken --> Stock price as on March 2008 is Rs. 85/- as on July 2008 is Rs. 150/-

3) Infosys --> Stock price as on Jan 2008 is Rs. 1,400/- as on July 2008 is Rs. 1600/-

What to say now?

Every thing is changed. Unitech is in downtrend, Sasken is in Uptrend and infosys a liitle bit uptrend or exactly sideways trend.

What we are going to conclude from this ???????????