Investments are stocks that you buy for the long term. More research goes into the choice. Of course, you buy when it's low. Instead of selling just because the stock is high, you let your investment continue to make you money and ride out the ups and downs.
Dividends are basically payments from a company to their shareholders. The money comes from the company's profits and can be given in several different ways at different times. The money can be deposited into the shareholder's accounts or they can be paid through shares. The company can have a set time when the shareholders are paid and/or they can give special payments, which are just payments given at a different time than normal.
Stock increases are good for both trades and investments. With a trade, you wait until you think the stock has reached its highest point and then you sell. With an investment that you want to continue with, you get to enjoy that your stock is making you money.
When stock decreases happen, a trader has two options. They can buy if they think the stock will turn around soon. If it is their stock that is decreasing substantially and not turning around, they would probably sell to avoid losing more money. Investers have three options. If it is their stock that is decreasing, they can either ride the drop out or if they deem it a bad investment, they could sell. If they want to invest in a company, stocks decreasing could be a good time to invest.
A catalyst is something large that will cause stocks to either increase or decrease substantially. A trader would buy stock before a good catalyst and sell after. If they were predicting it would be a bad catalyst, they could sell before it occurred. An investor would typically ride the catalyst out.
Short selling is done when a trader believes that certain stock is going to drop. They borrow shares from a broker and sell them. When the price of that stock drops, they buy it back and return it to the broker. Their profit comes from the difference in market price.
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