Traders versus Investors
Most of the people enter market in the shoes of an investor. They usually buy and hold the currencies in the hope that appreciate the value. otherwise, they are always seeking for market to grow. A typical investor aims at selling high and buying low to make profit. Some people will leave in investing game, and will turn towards e-commerce.
Many people who consider themselves traders actually continues to act as investors. This can result in serious problems due to trade and investment activities are very different, requiring a different business mentality. If the merchant is still acting as an investor, many opportunities for exchange of good practices may be lost. This will leave open the merchant to additional risks that the places are held longer and increases the exposure.
Just as different traders of range and trend business people, different kinds of market participants that traders and investors know role and act accordingly. Traders simply will not behae as investors and vice versa. Negotiation needs a different set of thought processes that make it possible for a person to see fair trade as a lucrative business.
In many ways, just daily tips and strategies proposed by the market experts like Warren Buffett and William O’Neill from the investors, companies should not apply to businesses. These are definitely investers, not traders. Mixture of roles may lead to lower commercial potential and lower revenues. Let’s look at the differences between the traders and the investors.
Common features of Traders
• Traders enter a position to make money.
• The traders sell short a currency.
• Companies will last for a short time.
• Traders use technical indicators and charts.
• Traders reduce losses.
• Traders take profits quickly.
The similar characteristics of investors
• Investors buy and they hold.
• Investors take long (or buy) positions.
• Investors will be valid for a period of time.
• Investors will focus on a thorough analysis.
• Investors do not have to do with short-term losses.
• Investors will cause the earnings.
There is certainly a difference in traders and investors. This is true in Forex market. Most participants in Forex market are trading people.
Still, many people who want to do trading are acting as an entrepreneur. This can cause great difficulty and frustration and may even cause to lost profits.
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