Andrew Baxter's "Guide to Making Better Financial Decisions" clarifies the crucial difference between trading and investing. Trading focuses on short-term market fluctuations, aiming for quick profits through frequent buying and selling. It requires active market monitoring and carries higher risk. Investing, conversely, prioritizes long-term growth, holding assets for extended periods. It emphasizes fundamental analysis and less frequent transactions, minimizing risk and maximizing potential returns over time. Baxter's guide helps readers determine their risk tolerance and financial goals to choose the strategy best suited to their individual circumstances, promoting informed and successful financial decisions.