Investor or Trader?

Being An Investor
Investor or Trader

When we say the word "Buy", it involves of giving out your Money to get something instantly.

Investor is named where you giving out your money for something, in order to get something you want or don't want, it takes long term. The definition of long term itself has different time frame for each individual, some might say 6 months, 12months and even 5 years.

Trader
is named where you giving out your money for something, in order to get something you want or don't want, it takes short term. Well, as usual, the definition of short term itself also carries different time frame for each individual, some might say 1 day, and some say even 10 minutes will do.

So what are the things that most investors would do?
Investors involve themselves with a lot of analysis of the company and believe it has potential, whether it drops or ups, you have the exact confident.
The Pro : You know what you are investing
The Con : You might not know where is the high value in order to let it go.
The Con : Not knowing how low is the low in order to consider to let it go.
Skill needed : Knowing the low for enter, and letting go the high.
Skill needed : Knowing how low is the low, and letting it go also.

So what are the things that most traders would do?
Traders themselves with their own tools and judgement, believing that win or loss in the shares is a very common. Whereby high risk come with high return, low risk comes with low return. The confident comes with their own self-managed system, and not really based on each company individual performance.

The Pro : You know what you are trading with your own confident of tools.
The Con : You have to do lots of trades
Skill needed : Knowing the low for enter, and letting go the high most of the time.
Skill needed : Knowing how low is the low, and letting it go most of the time.


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There are a lot of variances of definition of the term as expressed above such as:
a) short term
b) long term
c) low value
d) high value

But most of us would know what is Fixed Deposit, as it would mention to return your investment with % per annum.

But how about being a investor or a trader. Well, it also comes with the definition of getting return of investment % per month, or % per annum, that should be worth more than the Fixed Deposit. There's no such thing as a free lunch without knowing yourself and the return of investment that you want and don't accept. There is no such thing is winning all the time or getting your profits all the time without losing some.

In summary, being a investor or trader, you know what you are being an investor and trader. In other words, if you are a salesman, you know what a salesman's job scope would do.

Don't mix salesman, sales manager, marketing manager's jobs scope into one as each position carries different responsibility and sales target.

As you don't mix yourself as an investor for some shares, and being a trader for some shares at the same time, as it carries different return of investment and different confident level, and making yourself confuse at the end. 

Next..., (2) How to invest?



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