A stock trader is a speculator that is trying to make profits from quick changes in value of stocks or other securities that he trades. Stock trader have few differences from normal investor and the main difference is that real investors are holding stocks for long period (years) till the market value of company’s stocks increases, while a stock trader buys and sells stocks very quickly in a period of days or weeks.
There is not much evidence of small stock traders’ success in the markets. Most of the small scale speculators are tend to lose their money (that is the position of this website author) over some period if they are trading their investments very often. Only the biggest scale speculators as George Soros or hedge funds can make profits from speculation because they can influence the media and the whole financial market which increases the probability of the profits very seriously.
And this is not only about market effectiveness, which is probably not perfectly efficient over short term period, but there are huge mass of professional stock traders over the world and all of them are trying to make profits deceiving each other. But the reality is that most of them have to face losses because of stock trading expenses (trading fees, spread or other) and they can’t beat the market all together because they are the market.
Stock trader that sells and buys stocks or other securities is a day trader.
Investment psychology gains momentum in contemporary business world
Most Popular Articles
Investing in Gold (I)
Investing in Gold (II)
Investing in Uncertain Period
ARE YOU INTERESTED IN:
BROWSE ON DICTIONARY: