Is Limit Order classified as Trading rather than Investing?

External question — Personal Finance Stack Exchange Author: puzzled Original post: https://money.stackexchange.com/questions/159299 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I had a question , and a Scholar has commented below. Sounds like you're trading rather than investing. Good luck; you're going to need it So my questions are below( despite my very long and monetary successful personal investing history, I consider my self student ), Is entering a LIMIT order part of trading and not investment ? Is trying to save on interest part of trading and not investment ? Is only Market order investment and everything else is trading ?

External answer — Personal Finance Stack Exchange Author: Bob Original post: https://money.stackexchange.com/a/159304 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. The term trading is not precisely defined. It is not a precise term. The way I think of it is that any time you place an order to buy or sell a security that is trading. As such, if you want to do investing you are going to do some trading also. So buying LMT with a limit order (or a market order) is trading. If you are buying with the idea that you are going to keep it for a long time, then I would consider that investing.

External answer — Personal Finance Stack Exchange Author: Victor Hahn Original post: https://money.stackexchange.com/a/159313 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. As others mentioned before, the order type (Market, Limit, whatever) is a technicality and has nothing to do with the very subjective question if your trades would be considered "active trading" vs "investing" or "speculative" vs "conservative". I'd like to add that it very much always appears prudent to add a limit to any order. A market order, in contrast, signals your willingness to buy or sell at any price no matter how bad . This is not what you want.