In my 15 years in the financial industry this simple question is the most basic, and yet one of the most misunderstood.
Let’s start by defining what I mean by the terms “trader” and “investor”. To borrow from one of my favorite bloggers, Carl Richards, “Trading is the buying and selling of individual stocks over short periods of time. Investing, on the other hand, is the purchase of diversified investments and requires holding them for long periods of time.” I think many of us often confuse these two completely different activities.
Most of us would probably classify ourselves …Read More