Investing or Day Trading?

Investor or a Day Trader?

We may have heard these terms numerous times from numerous people. It may have everything to do with the Share Market, but still it's two totally different approaches to the market. Lets see in depth what these two terms mean.

Investing/Investor

Basically Investor approaches the Share market with a more long term view and plan in mind. The contrasting factor between the Investor and a Day Trader IS the Time factor. So an Investor will seek for shares/stocks that will generate large profits or benefits in the long run. He will sacrifice his current income in view of a much larger and a profitable flow of cash in the long term. The long term here may refer to a period of usually over 5 years. They will take into consideration of the long term business plan or model of the business, it's Vision and Mission and stably factors. Investing requires a lot of long term vision and patience.

Day Trading/Day Trader

This means the exact opposite of what Investing is. That is, Day Trading involves buying and selling shares/stocks within one business day. Yes! All buying and selling activities should be completed within the same day. No shares should be held for the next day in view of better profits and such. So this is a very tricky business. Day Trader has to be extremely vigilant of the behavior of the market or could end up loosing everything earned in one single day. But in turn, if done correctly Day Trading is the most profitable and successful way of earning easy money. Don't let that last statement ease the weight of the risk of this form of trading. As I've said before Day Trading is an extremely risky business. And equally benefiting if you know the game.