A lot of investors like us that enter into the markets neglect about what they are accomplishing. Investors often get mixed up and confuse themselves as traders and similarly traders can mix up and think like investors. An investor should only buy high growth stocks with a long term perspective whereas traders are supposed to enter almost any stock out there for a quick gain of some amount.
If an investor thinks like a trader, he can enter into bad stocks with a long term mindset and will make severe losses, whereas a trader can enter into bad stocks and try to think like an investor, going long in it and making servere losses.
An investor should not enter into low quality shares and make a mistake because they come with a long term mind set and low quality names are just worth being in for small amount of time.
Similarly if traders confuse themselves as investors, they can enter low quality stocks and instead of selling early, they try to go long term in them and make losses. Some traders also enter into high quality stocks and make low returns in short period of time which is also a mistake.
Traders come with a short term mindset and thus they must maintain tight targets and stop losses which aren’t just what investors do as his or her task is always to simply key in high quality shares and forget.
If you want to achieve success in stock market trading or investing, you must realize your needs and find out what you are interested in doing in the share market. In order to play, you trade or if perhaps you wish to develop serious well balanced earnings out of your investments, you make investments in the share market. Firmly follow as to the plan you make and don’t do blunders by getting mixed up.