Trade your money as a trader/as an investor

Returning to the words of the first article in this series, anyone could think that investing in the stock market is only for millionaires like Warren Buffet,

Returning to the words of the first article in this series, anyone could think that investing in the stock market is only for millionaires like Warren Buffet, and George Soros, however, currently the facilities to open an investor account with a minimum capital, Through a regulated financial intermediary, they make the benefits of growing a publicly traded company available to everyone.

In the following article, we will talk about the distinction between investing with the vision of a trader or investor.

Information and deadlines.

Perhaps the issue that differentiates us from millionaires is, far from money, the type of information we have about the financial market, specific sectors, or businesses. It is clear that belonging to the business circle has the advantage that the information can reach you first or you can have specialists who are dedicated to keeping you abreast of the latest trends in any market.

For mortals, information often arrives with a considerable delay, limiting the potential benefits of a good investment. Or so we would all generally think, however, in today’s information age, social networks and, specifically, the networks that transmit economic-financial information, allow the time gap in which the investing public (specialized and non-specialized) finds out about important news actually minimal.

Thanks to this, both the investor and the trader can now take advantage of new opportunities in the financial market.

Speaking this time about money, a well-informed investor will always be prepared to allocate the necessary resources as soon as a good opportunity presents itself, which does not necessarily mean that he puts all his capital in a single investment.

The reason an investor doesn’t put all his money into one business is simple: diversification.

The investor always tries to look for different sources of income, but above all stable sources in the long term. The long-term vision is one of the things that differentiates the investor from the trader. While an investor looks for his money to generate more money, perhaps without any effort, the trader looks for opportunities in the short and medium term, opportunities that exist when the markets oscillate due to fundamental issues.

Search for opportunities.

Those opportunities, for the trader, regularly imply that he is aware of the events that directly affect the price of an instrument during the market sessions.

The trader sees the need to rely on technical and fundamental analysis to detect trends in the markets that favor their returns, while the investor can be calm, and confident, if not in the medium and short-term growth of their instruments, yes in the returns that they offer you periodically for the simple fact of maintaining them.

That peace of mind is what traders do not enjoy.

The intention of the trader is always to find opportunities that arise when there is nervousness in the markets; when investors, sometimes inexperienced, fall into the idea that bearish times are going to last, many times without understanding that the market is about cycles, that where there is a fearful seller there is someone waiting for the moment to see how far it goes that feeling and take advantage of it.


Another issue that characterizes the investor is his greed and tenacity. The investor always looks for accurate options, which allow him to remain calm while he does not have the liquidity he allocates, unlike the trader, who sees the need to make various estimates, aware that although investment is not accurate in the long term, this one can offer yields in the short and medium.

The latter is what generates experience in the trader, who develops skills to respond to unforeseen events in the market, always with a vision of growth in their returns.

Want to know about Technical Analysis in R: Introduction [Special]

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button