Trading and investing both are good. But it depends mostly on how you are using both these options. For trading activity one must have sound knowledge of that currency. One must have study of the movements of that particular currency; he has to keep in mind the external factors that are affecting that particular currency. While investing timing of investing is more important. Currencies are volatile in nature, so one must follow a principal “Buy on every fall and sell on every rise” Do not invest in single currency or segment/sector. Invest in different sectors, divide your risk.