Trader psychology VS investor psychology
The equity market is a great playing field for wealth creation. Trading and investing are two key areas through which you can secure more wealth for your future. But you must remember that trading and investing are quite different when it comes to earning profit in the financial market . Let’s try to understand this with an example. Suppose two people have been given a bag of seeds. Person X trades the seeds the very next day and earns a profit whereas person Y, holds on and sows the seeds, harvests the yield, and continues this for years until he/she/they have enough volume to trade. When that volume is traded, the profit is much more than what person X earned. In the financial market, there are some defining aspects of trade and investment that work similarly. We’ve discussed a few below: Period Generally speaking, trading refers to the act of holding stocks for a short term. It could mean holding them for a week, a day, or perhaps even a couple of hou...