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Sunday, February 7, 2016

Trading vs Investing

Whats the difference?

Its confusing to me because investors make trades, just more longer term such as a position trader, but people describe each as being "different".  Im a position trader, but im not sure if im an investor.

A trader's "style" refers to the timeframe or holding period in which stocks, commodities or other trading instruments are bought and sold. Traders generally fall into one of four categories:

Position Trader – positions are held from months to years
Swing Trader – positions are held from days to weeks
Day Trader – positions are held throughout the day only with no overnight positions
Scalp Trader – positions are held for seconds to minutes with no overnight positions

So is an investor more longer term than a position trader?  Maybe.

Maybe investing should be called long term position trader to prevent confusion.  I think psychology of older people with money affects the term used.  They think it sounds more safe and responsible to be an investor, rather a trader.

im a position trader, i make bets. Investors make bets but they might be longer than a few years.  If i happened to hold onto a position trader for a few extra years, would i then be an investor?  This is confusing.

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