Traders Vs Investors

in #cryptocurrency7 years ago (edited)


Trading/Investing is two different categories that people belong to in the financial market, The difference between the two categories is noticeable and your personality affects how well you do in the category, emotions and thoughts affect the way you trade immensely. Separating Traders from Investors is like dividing Logical Thinkers from Emotional Thinkers.



TRADERS

Prefer Short-term than long-term, place in multiple trades a day and less likely to leave trades over the long term; they chase the pump and dumps, and invest in a project for the volume instead of the product and hold it for not longer than a week. Good for Forex, Binaries, Crypto.                                        

Good Strategies to use as a trader"      1- Scalp       2- Hunt Pump and Dumps            3- Analyze

Investors

Loyal to the project they invest in, rather long-term rarely short-term. Buy into a product and only sell after quite some time has passed (months to years), follow 5 principles (People, Product, Purpose, Penetration, and Community).        

Good Strategies to use as an investor"   1- 5 Principles             2- Research              3- Majority

Emotional Thinkers tend to excel more in investing, since they put their heart into the project and assemble as much information as possible about the product and the reasons they should invest in it. Emotional thinkers can't withstand losses so they would usually go out of their way to try to cover up for the loss which would lead to more losses because of the irrational thinking, favored financial categories Cryptocurrency, Stocks, Swing Trades.

Logical Thinkers succeed more into trading and stressful financial decisions, since they don't try to make up the losses they had when trading which is a crucial step to achieve when you are willing to move forward, so when it comes to trading like Forex, Cryptocurrency, Binaries; Logical traders essentially do better.

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Disclaimer - This is my opinion and my point of view, if yours differ from mine than don't get butt-hurt just feel free to mention it down below, and then ill keep in mind and try to edit it in.


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currently doing both for good reasons because i believe cryptocurrentcy is going to take off in a big way

of course you can always do both, separating your holding for the future bread and the everyday pocket money is the way to go.

Saludos amigo, en mi caso realizo algo de las 2, anteriormente solo era un inversor pero ya e ido aprendiendo a realizar trading, lo cual no es nada fácil, y uno debe tener mucho control emocional, debido que las emociones nos hacen cometer errores, en mi caso e cometido varios, pero de esa forma también se aprende, aunque sea de forma dolorosa, saludos

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