By: Qwoter
How do you see the world?
Do you consider yourself an investor or a trader?
Most people think of themselves as investors. However, if you knew that big winners in the markets call themselves traders, wouldn't you want to know why?
Simply put, they don't invest, they trade.
Investors put their money, or capital, into a market, like stocks or real estate, under the assumption that the value of the entity they invest in will increase over time (see What is Investing?). As the value increases, so does the person's "investment." Investors typically do not have a plan for when their investment value decreases. They hold on to their investment, hoping that the value will reverse itself and go back up.
Investors typically succeed in bull markets and lose in bear markets. This is because investors anticipate bear, or down, markets with fear and trepidation and therefore are unable to plan how to respond when they're losing. They chose to "hang tight," so they continue to lose. They have some idea that a different approach to losing involves more complicated trading transactions like "selling short," of which they know little and don't care to learn. If the mainstream press continually positions investing as "good" or "safe" and trading as "bad or "risky," people are reluctant to align themselves with traders or even seek to understand what trading, as opposed to investing, is all about. Learn how to invest properly with our Investor's Checklist.
[Read full article]
Do you consider yourself an investor or a trader?
Most people think of themselves as investors. However, if you knew that big winners in the markets call themselves traders, wouldn't you want to know why?
Simply put, they don't invest, they trade.
Investors put their money, or capital, into a market, like stocks or real estate, under the assumption that the value of the entity they invest in will increase over time (see What is Investing?). As the value increases, so does the person's "investment." Investors typically do not have a plan for when their investment value decreases. They hold on to their investment, hoping that the value will reverse itself and go back up.
Investors typically succeed in bull markets and lose in bear markets. This is because investors anticipate bear, or down, markets with fear and trepidation and therefore are unable to plan how to respond when they're losing. They chose to "hang tight," so they continue to lose. They have some idea that a different approach to losing involves more complicated trading transactions like "selling short," of which they know little and don't care to learn. If the mainstream press continually positions investing as "good" or "safe" and trading as "bad or "risky," people are reluctant to align themselves with traders or even seek to understand what trading, as opposed to investing, is all about. Learn how to invest properly with our Investor's Checklist.
[Read full article]
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