stock trading for a living: are you a trader or investor?
This might seem like a simple question for a stock trader but take some time and really think it out. My definition of a trader is a someone who takes risk soley based on price and volume. My definition of an investor is someone who speculates based on the current price of a stock that it is a value compared to what it is “worth.”
The reason for taking risk in both of these instances will be vastly different. The risk parameters for each will be very different. The more crystal clear your business plan is in regard to defining an edge, risk and trade expectation the easier it will be for you to follow your plan flawlessly.
Tags: day trading, day trading stocks, forex trading, investing, online trading, swing trading
March 4, 2008 at 1:53 pm
[...] [Technorati] Tag results for swing trading wrote an interesting post today onHere’s a quick excerptstock trading for a living: are you a trader or investor? March 4, 2008 by Daytraderpete This might seem like a simple question for a stock trader but take some time and really think it out. My definition of a trader is a someone who takes risk soley based on price and volume. My definition of an investor is someone who speculates based on the current price of a stock that it is a value compared to what it is “worth.” The reason for taking risk in both of these instances will be vastly differ [...]
March 14, 2008 at 4:19 pm
It would be great if you can help out on some of these plans:
http://www.technicaltradeadvice.com