What is a trader? A trader is someone who buys or sells in the market. They are not particularly concerned how long they hold the stock they are simply looking to make money.
An investor wants to identify stocks that provide maximum capital growth over a long period of time.
A trader wants to make a profit without any preconceived ideas of how much time they are going to hold the stock.
An investor wants something that is predictable and shows growing earnings. They are looking for capable management and something that is reasonable. They hope that the company isn't borrowing too much money and they want the company that they are interested in to have a good cash flow.
A trader on the other hand is not particularly worried with these issues. Traders are concerned with the movement of the price of the share.
An investor sells his stocks or shares when it has delivered the result the investor was looking for or the performance is looking dodgy and the risk of holding it is very high.
A trader will sell when the stock has fallen to a set point.
So, which one are you? I'm going to hazard a guess and say that although most of you who are reading this like the glamour of the trading section and the excitement it generates. However you may not have the necessary knowledge and skills required to be a success at this. I know I don't. Even though it's boring an yawn inducing most of your guys will be investors in which you are building capital over the long term to pay for such things as retirement, your children's school fees or even something like an overseas holiday.
Be realistic when you think about your money making strategy. Are you an investor or are you a trader?
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