When it comes to wealth creation in share market, investing and trading are the two types. However, investing and trading are different approaches of wealth creation or generating profits in the financial market.
Investor
An investor is person who commits with his capital with expectation of future returns.
Investors uses various investment channels to grow their money to get benefits during the retirement.
A wide variety of investment vehicles,
1. Stocks
2. Bonds
3. Commodities
4. Mutual funds
5. Exchange-traded funds (ETFs)
6. Options
7. Futures
8. Foreign exchange
9. Gold, Silver
Trader
A trader seeks to generate short-term profits by buying and selling securities over and over again.
Differences between Investors and Traders
Differences between Investors and Traders
Investor
|
Trader
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Long-term investment horizon
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Short-term investment horizon
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Buy and sell rarely
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Buy and sell frequently
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Time poor
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Time to actively manage portfolio
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Risk averse
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Comfortable with risk
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