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.

Bull Market and Bear Market

What is Bull Market and Bear Market?

Bull/Bear markets indicate different market situations prevalent in a Stock Market. The names have been derived from the fighting/attacking positions or ways of the two animals in comparison to the market behavior. 

Bull Market

As we can see in the above picture as a Bull attacks, it's horns point upwards. This has been used to signify an upward or positive movement in the Stock market or the share prices. this could be of a single stock, a group of stocks or the market as a whole. A Bull is a fierce and forceful animal, and so is the rising prices of shares in a Stock market. So that's why rising prices, a good performing market is called a Bull market.

Bear Market

In the above picture we can see the Bear laying down and defending itself. Bears can be fierce animals but generally they are slow, sluggish and lazy animals. And so is the stock market with decreasing prices/performance. A Bear stands up when  it attacks, so it attacks down towards the earth with it's claws. So this had been used to indicate dropping prices of the market. So that is how a sluggish or a market decreasing in performance got it's name 'Bear Market'.