Monday, August 4, 2008

Investor VS Trader

Are you an investor or trader of stock market? Do you know what is the difference between investor and trader? If you do not know, then it is very important to read about it and make your choice either you choose to be investor or trader of stock market.

I am an investor yet, I am half-trader. It means that I am investing into stocks of great companies but if I have the chance to sell to gain profit, then I will sell. I am still an investor at core because I like to invest for long term rather than trading stocks.

Who is Warren Buffett? Is he investor or trader? Who is George Soros? Is he investor od trader?

Investors:

Investors are people who buy stocks and invest for long term. It means that investors seldom buy and sell. Most of the time, investors buy and hold, and let stocks appreciate in the long term.

Warren Buffett is one of the investors of stock market. He is the ultimate investors of stocks. He is called the Oracle of Omaha. I read a lot of books about him and his investment strategies. It really takes time and hardworking researches on companies. Warren /Buffett is currently the world's richest person with total net worth of $67 billion.

Traders:

Traders are people who trade stocks. They buy low and sell high. They will sell once they earn their targeted profit. Most of the time, traders never even care about what is the companies behind the stocks they buy. All they want is to make money by buying at low price and then sell at high price.

Trading is an old concept and it has been around for centuries. Trading is like playing buying and selling. Trader A buy AAA products and then sell to Trader B who offers higher price for the AAA product.

George Soros is considered as trader or speculator. He is quite famous because he is good at speculating. Currently, his total net worth is $9 billion.

So, are you an investor or trader of stock market? You need to make this clear because it is the basic mindset before you put any money into the stock market. If you are not sure whether you are an investor or trader of stock market and you are currently investing in stock market, then most probably you are gambling in the stock market.

So, please make your mind clear and set your mindset because mindset is extremely important to be successful in stock market.

2 comments:

Biz said...

You have rightly said 'make your mind clear and set your mindset because mindset is extremely important to be successful in stock market"

Great article. Love to hear from you more.

BizBlogged - Finance blog,finance,economics,Corporate finance,Personal finance,Investing,Marketing

Sirus said...

Investors do not have a plan for what to do if the investment decreases in value. They hold onto the investment in hopes it will bounce back and again become a winner.

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