Being a stock trader vs investor:
Is there a difference, and if so, does it matter? let's get down to the bidness 🤓
The term "investor" is often used interchangeably as an umbrella term which contains the category of a trader. Are there any differences though?
When it comes to a fundamental strategy of trading stocks, there is a world of a difference. 🤓
let us explain by taking a deeper dive into their strategies 🧐
Ultimately, the question comes down to how much pain can you take? 🤗
An investor's strategy is to mainly focus on the fundamentals and long term outlook for a company. Most often than not, (Warren Buffett as an example) investors tend to hold stocks through thick and thin, and most often than not, buy more shares during down trends to average down losses
On the other hand, a stock trader is less pain tolerant and may rely on the charts of a stock more than the fundamentals of the company. Traders dont usually have the stomach to hold stocks through a downtrend.
Within these 2 categories, there is a 3rd category coined by a man named Nicolas Darvis
A Techno-Fundamentalist: 🤓
These #traders tend to get the best of both worlds by picking stocks based on the fundamental principals of an investor, but entering and exiting a losing trades as quickly as a stock trader (i.e. the strategy that the #flyelevated program teaches for free)
Whichever works for you, 🤗✌😁 as long as it works, it works :p