Traders and Investors

Rajesh Sharma

My answer to Anil Dongol ji's querry on my post
Anil dangol ji,
Traders earn by increasing their turnover by buying low and selling high several times in a given period of time. In case of loss in a stock, they balance it buy making profit through another stock. They take risk - moderate or high. For all this, the personality should have attitudinal toughness, sound analytical ability in calculating risk, high level of familiarity with the market behavior, speculative ability in analyzing trends, good information about companies they focus on trading and above all courage to taking decisions and implementing them on time. If someone has such qualities he or she could succeed in trading.

For investors, there is a great need of going into details about the strengths and weaknesses of a company or companies they are interested to invest. Traders, primarily invest in shares of a company, but investors invest in a company. They must have a long term business strategy with contingency plans to cover several "ifs" and "buts". They need patience as they have to stay in a course for a longer period of time. They are calculative risk takers and many among them prefer safety and security for their investment over a fatty return. Therefore, if someone has such traits and attitudinal preferences that person could succeed as investor.
For skills, such as managerial, financial and technical skills, if their size of business is large, both traders and investors could utilize services of fund management companies or that of professional people.
Finally, I agree with Ashok Sitoula ji that an investor has better chance to win.