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Tuesday, March 23, 2010

Trader or investor ?

The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer term time horizon, whereas traders tend to hold assets for shorter periods of time in order to capitalize on short-term trends.
If you keep hop in and hop out of share market frequently within a month or so, that clasify you as a trader instead of investor. Meaning, you will capitalise on market weakness and strength to place your entry and exit from the market. A trader is more agressive than a investor. Investor tend to trade base on fundamental and hold stock for longer time period until there is changes to the company regarless of short term market sentiment.
You need to identify if you are a trader or investor to place your strategy to share market investment, both can be very profitable if plan wisely.

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