guys your opinions on difference between traders and investors

[#1]

which r u , my definition is an investor buys parts of co for long term growth and dividends traders look at increasing their money with whichever way the markets go going longv /short etc omo who makes the most cash???????????

[Werner_1]

I am a long term guy, but also trade short term warrants/ssf now and then with a very small portion on the portfolio, idea initially was to hedge when needed, but didnt do this so well yet... this could create a huge debate, as a few weeks ago, but i truely believe with the use of compounding and time on your side, long term has huge potential and at a significantly reduced risk profile to that of trading... just reinvest dividends and contribute cash on a consistent basis, this will go a long way...

[Werner_1]

These guys online will say that only un-abitious people are long term investors, but this is total nonsense, look at Reinet's investment strategy...

[Shard]

Investor cares about the company, Trader cares about the money

[Werner_1]

good point, the way i see it is: investors buy a portion of the company because they believe it has future value and will make good money over time, e.g. dont worry too much about current shareprice only to get good entry and exit, rather look at the business as a whole, traders don't care about the business, only the shareprice..

[J12]

I think you guys have it pretty much summed up. I think traders are much more risky than investors and don't really have a day job (except for trading) whereas investors are generally working class people. Traders often bet more money than they have on market movements (gearing) and thus the huge risk (you could lose your house, you car and whatever else you own). Investors spend much less time watching the market and losses are limited to what they've invested. I'm not very familiar with the best traders in the world, but I'm sure they make a lot of cash. I think everyone here knows the best investor in the world and I'm quite certain that he makes more cash than any trader. The bottom line is, if you're good at what you do, you'll make a lot of cash. If you're not, rather stick to investing.

[Werner_1]

true. one has to have passion for what one does, be good at it and success will follow, and another thing, never give up, as Donald Trump always says, if one wants to trade, be careful, have a good strategy in place and stick to it, and dont give up before one learnt the ropes. i have never given up investing or trading, maybe cut back on trading, but have always maintained a small portfolio for high risk traders, its a good learning experience, with low risk on my total portfolio...

[#8]

Even investors have different schools of thought - e.g. index tracking, contrarian investors, value investors, punters etc. I wonder how many investors though are able to consistently beat the index (or satrix40)? Having said that though, I am reading 'trading in the zone' by Mark Douglas. He says that only about 10% of traders that he has interviewed are actually consistently earning good returns.

[#9]

LN. Thanx for the question. I was also wondering about this. I'm new to all this so I only invest at this stage. My goal though, for the future is to be a trader. If and when I can make enough money from day trading and go on early retirement.... Why not? I'm sure some of the guru's here make a killing regularly.

[#10]

daytraders are ruining market for everybody;onlyinterested in closing out positrionsc locking in profits

[#11]

daytraders are ruining market for everybody;onlyinterested in closing out positrionsc locking in profits

[#12]

daytraders are ruining market for everybody;onlyinterested in closing out positrionsc locking in profits

[#13]

daytraders are ruining market for everybody;onlyinterested in closing out positrionsc locking in profits

[doomsdayza]

The way I see it, traders make their daily living off trading. Investors (I might be generalising) have other sources of income (basic eg. salary) which they use to grow their LT portfolios. Traders (I've seen John comment on this) also have LT portfolios. So in the end, both lean towards having LT portfolios, it's just generating the cashflows which differ.

[#15]

hey Jayemark. How is day trading different from any other type of trading (or investing for that matter). The one just looks at smaller timeframes. Don't tell me investors are in just for the dividends? If long term is your focus, than you shouldn't be worried about what day traders are able to scalp on a daily basis anyway, you should be focusing on the macro economy, which a day trader cannot possibly influence

[frank_zappa]

Interesting topic, thanx. Having said all that, what timeframes are we talking about? Traders - minute by minute, day by day - and investors?

[louisg]

Long term - 3 years+

[louisg]

Skaaptjop, I often wonder if one could beat the Satrix40 in the long term by just buying all the shares in the Satrix40 EXCEPT the gold mining companies. Which do you think will perform better, the Satrix40 as is or Sarix40 without the gold mining shares? What would your initial thoughts be? PS lets ignore capital requirements, etc. Just assume there was a such an index available.

[john_1]

You are on the right track...you can do better just think it through...

[louisg]

I would remove a few more shares that do not meet my criteria (gold miners don't) for investment. Which would you remove John?