Are these two different stock buying techniques?

Question

When you see people frantically buying a stock and then they sell it an hour later, or three days later; is this the same kind of stock trading as having stock that you hold on to for years and sit around with your buddies talking about on the weekends?

What kind of stocks are the ones they are selling right after they get them etc....and rushing around more ?

Answer 1

You are actually talking about the difference between trading and investing. Trading is short term and it basically seeks moves based on news or momentum from stampeding herd of buyers/sellers so you simply ride that move for the duration, usually a a few days max.

The other long term strategy is to buy good companies that keep making money every year and wait many years as their shares grow with the earnings. This is the usual way normal people invest their money for the long term. In the short term trying to catch moves is exceedingly difficult for non-professionals.