Stock Traders and Investors
Stock Trader-
An individual or firm who purchases and sells bonds or stocks (equity) and other financial products in the financial market is called as stock trader or stock investor.
Stock traders and stock investors-
Stock traders are the professionals or the firms, who are related with trading of stock in stock markets as their principle capacity. Stock traders generally make profit for their customers from anywhere in several seconds to several weeks with the help of their trading skills and sound understanding of the stock market.
Stock trader is a professional person with sound knowledge of stock market. Some people call themselves as a part time or full time stock investor or stock trader without affecting their current occupation. Stock trader is also called as financial advisor or manager, as soon as he gets clients, and acts as a money manager or starts advising them with an intention will add value to their finances. In this case, the financial manager can be a government or corporate bank employee or an independent professional.
Financial managers deal with mutual funds, investment funds, hedge funds, equity investments, pension funds, fund management, wealth management, and equity investment. Other types of stock trading includes trend following, day trading, scalping (trading), market making, trading the news, arbitrage, and momentum trading.
On the other hand, stock investors are nothing but individuals or firms, who buy stocks from the stock market for their clients with the purpose of holding them for a long period of time, usually for several weeks to several years to make profit. Stock investors have sound analytical skills about the stock market and are well aware about the ups and downs of the stock market.
Most of the investors believe in buy and hold strategy, as the name suggests, investors will buy stocks and hold it for a long period of time and will sell it again as soon as the stock rate increases or stock market condition improves to make profit. In the period of 1980s and 90s this strategy was very popular in equity bull market, where investors used to buy stock when market declines and hold them till the market returns to its previous high or beyond.