Now there is a big debate on who is better for wealth creation, an investor or a trader.
In this technology era, People are in between an investor or a trader and savers. Just like that, most people don’t understand the difference between assets and liabilities.
People
are buying a big cars, Expensive Phones, Heavy lifestyle maintenance Costs, etc. They
are feeling rich with all of them.
Now
come on the Point. Many people think they are investors but they are really
savers. That is why still in India People are retiring at the age of 60s.
People who are planning that I want to invest for my retirement for the age after the 60s are actually planning for less Investment and More Savings. Whereas an investor is
a person who actively manages his or her portfolio.
Now
the simple definition of an investor or a trader.
An Investor buys to hold. A trader buys to sell.
When a person says, “I bought this
stock or piece of real estate because I know the price is going up,” I know
this person is really a trader. In other words, they are buying only to trade,
not to use. That is why I say most people are traders rather than investors. They
are playing with the prices of things.
Whereas, An Investor is like “to plant trees” or we can say that they are buying cows for their
“milk and calves”.
If
you want to be successful in the world of Investing, you need to become both an
Investor and a trader.
An
Investor knows what to analyze and how to manage investments. A trader knows
how and when to buy and sell. An investor wants cash flow from the assets. The
trader wants to realize a capital gain from buying low and selling high.
Arth Prabandhan
M-9785897827
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