InvestorQ : Is the time frame of an investor and a trader very different?
Anamika Sodhani made post

Is the time frame of an investor and a trader very different?

Answer
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Mahima Roy answered.
2 years ago


The trader takes a very short-term approach to make profits. As soon as the profit target is achieved, the trader exits the position in the stock and moves on. There is no defined time frame for a trader. For example, intraday traders are even willing to book profits in a matter of a few hours. Essentially, trader things short term.
The investor takes a long-term approach and is of the view that as the company starts performing and the market acknowledges, the returns will get re-invested to generate long-term wealth. An investor is not comfortable with short-term profit book as it is considered to be uneconomical. The investor will wait for years and at times for decades to realize the full value of an investment.