What Is The Difference Between An Investor And A Trader

An Investor And A Trader : Main Difference

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The main difference between a trader and investor is a Trader do trading to earn money or book profit in fix or limited or very short period of time and that could be in minutes to few minutes, hours to few hours, whole day/every day, two days, one week or a month, so their is no fix time period. it is also dependent on trading types and traders risk level. this is not direct investment but it also a type of investment to make money in stock market just way and time period is different.

An Investor invest their capital/money in good quality growable things which is for long term to get or earn good/very good/ multiplied returns in the future and the time period for this is long at least 5 or 10 years minimum and maximum more and more of it.
Investors Invest : in equity, stocks, bond, Goverments securities, funds, listed and none listed businesses or companies.

Investors also invest money regularly for different financial goals with their regular active income to enjoy returns in the future.

What Trader Do In Stock Market

• Traders do trading (buy and sell) in different tradable instruments available in market to make quick money from it.

• Traders buy stocks and sell them at fixed or limited gain and this process is frequently done by trader like everyday or week or whenever they get some profit making opportunity in a session which is not fixed.

• Trader can quickly exit the position and that may be in profit or loss. They don't look for this one. As they want to do it again and again in different assets because making immediate money is their main goal here.

• Trader needs to pay the brokerage and other taxes every time whenever they trade.

• Trader can earn money in few minutes to few days but which less or limited and not like returns of an investor.

• Trader may have major loss in trading and may be which is not recoverable or they can lost all their money if care is not taken.

What Investors Do In Stock Market

• Investor invest their money at once or regularly in good quality and growable companies,stocks,Funds, Bonds, Goverment Securities and other assets and wait till they will get good return from it and the time period for this is not fixed.

• Investor does need to pay brokerage and taxes once time only and the brokerage is some charges and taxes are zero after 12 months as per Depository rules and Income Tax rules .

• Investors can get tax free returns in future upto a limited amount which is decided by their stock exchanges as per government and Income tax rules .

• Good Investors doesn't need to worry about their money because it has invested in good instruments, like trader.

• Investors also get different benefits of long term investments like dividend and bonus from company regularly.

! Happy Investment and Trading !

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