InvestorQ : How do traders differ from investors in terms of their mental make-up?
Arusha Ray made post

How do traders differ from investors in terms of their mental make-up?

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Jignesh Gupta answered.
3 years ago
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Mental make and appetite is another important attribute that distinguishes a trader from an investor. The basic requirement for being a good trader is discipline. You need discipline in terms of stop losses, profit booking targets, risk management etc. An investor identifies a good stock and prefers to wait. As Warren Buffett put it succinctly, “Our holding period is forever”. That may be a slight exaggeration but it still captures the gist of investing. To make money in the long term, the company has to show the requisite performance, show sustenance, adaptability and also be recognized in the market. The entire process takes a lot of time and hence patience is the key.
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