Trading is all about making the best of trends in the market. When you are trading in the market it is very essential to keep your trading activity in perspective. After all, trading is essentially a way of playing the vagaries of the market more aggressively and using the volatility of the market to your advantage. Trading enables you to capitalize on the short term trends and momentum in the market which is normally outside the purview of investing. After all, investment is about the long term and it is based on perceived value and underpricing.