InvestorQ : How do the goals and philosophy of a trader differ from that of an investor?
Angel dcosta made post

How do the goals and philosophy of a trader differ from that of an investor?

Answer
image
3 years ago
Follow
The goal of a trader is basically to use short-term opportunities in the market and make profits whenever the opportunity arises. The goal is about making short-term money. The goal of investing is to build wealth over the long term. The idea is to buy and hold on to investments and facilitate the steady and consistent wealth creation.
A trader’s core belief is that share prices will typically move in a particular direction. If that direction can be identified then one can profit from the trade. The belief of the investor is less on the market reaction and more on the performance of the company. The investor believes that eventually, the stock price will track the company’s performance.
1 Views