Do traders make more than investors?

[tradingstrategies]

A financial backer might be glad to acquire 15-20% return each year, while a dealer, with some experience and logical ability can procure 15-20% each week!. Assuming you have a talent of observing the right stocks that will go up in present moment, you might be burning through your time contributing as opposed to trading.

 

[Layomi Layomi 2000]

In my own point of view,firstly you understand differences between trader and investor.

Trader:a trader who trade on a daily basis but it not necessary you have book daily profit.sometimes you will get losses.

Investor: a investor is a person who investt his money for long term.


My suggestion is, if you have long term view than you should invest and if you want little profits on daily basis you can trade but in disciplined way and also not be greedy .choice is yours.

 

[Victorial]

Well, I do not think you can compare. An investor targets long term goals by buying stocks or any other digital asset and sell when the police have risen. This may take years as it has no definite time to make profits. A trader makes small profits from the difference in stock or forex market. As a forex trader, that is what I do with the help of fundamental analysis and technical indicators.

Both are good but an investor can make more money if he invests right. You just have to make good research about the best stocks to buy and invest in them

 

[btaliat]

The two of them have different goals. With this they use different strategies to make money. So it may be difficult to assume the one that is earning more. A trader aims at making money for a short time and he may deploy any tactic to maximize his earning. He may use high leverage to make sure he meets up with his daily target. Am investor on the other hand aims at making money at a long term goal. He is not concerned about daily volatility of market. He aims at all time high of the scheme he's investing in.

 

[Alexandoy]

I am not well-versed with the stocks yet particularly the commission of the broker because I have not traded yet. However, when I acquired my stocks worth $20,000 the taxes I paid was $300 and the commission of the broker was around $60. Maybe if the broker will have a lot of transactions in a day then he can get rich. However, my understanding of my broker is a company that handles accounts of stock ownership. It is like a bank that you have to create an account before the broker can service your transactions. I actually have a question about the broker if they also handle other company's stocks or if they are exclusive to my bank's stocks only.

As a stock holder I don't think it is good to check on the commission of the broker because it is just like tax that you cannot avoid. No matter how much they earn from my trading then I wouldn't care as long as my transactions are done quickly.

 

[eldavis]

It depends on what you want though, both bring forth good profit, for those interested in long term deals, they usually go for investment, and for does who are into short term deals go for daily trading. What you get from your daily trade is determined by your skills. Though it is expected that does who trade daily should have more money than does into long term investments but you should also understand that it's still very possible to make losses during these daily trades, so your earnings is based on your trading skills.

 

[goodmoneygoodlife]

lol no.

Nope.

I disagree completely.

Almost no traders, including quant firms that hire TEAMS of people at $1M/yr, beat the market. Kind of unrealistic to think that one person could somehow be smarter than all the quant firms combined and consistently outperform SP500.

And by unrealistic I don't mean 'you probably can't beat the market over the long term.'
By unrealistic I mean 'you might have better luck buying the lottery than beating the market.'

Sure, you can have 1-2 good years or 1-2 lucky trades and 'beat the market' -- but it doesn't matter if your strategy loses you all your money in the 3rd year; you're still bankrupt. Not to mention frequent trading = short term cap gains = blunts your gains heavily. And not to mention frequent trading = more of your trades are being frontrun, so you lose even more money.

Wanna be rich? Start a business or get a high paying job, and invest that in SP 500 or QYLD or a mixture of heavily diversified funds. It's boring, but I prefer boring to being poor.

 

[sincerem]

A day trader is simply an investor too, he or she simply invest money to earn money online. If you aren't investing you aren't going to earn rewards via stocks & share investment. Everyone got strategies to invest in stocks, if you aren't looking deeply and making proper research around potential stocks & shares that will yield profit you aren't going to make money off through them. It is advisable to spend more time analysing the stock market than putting your money to buy any of them. Because you need better results and not just for investment formalities. Through your analysis gotten from deep research, you can make better use of it and secure your profit after short or long term stock & shares investment.

 

[Sotherefore]

A cryptocurrency trader is likely to make more money compared to a crypto investors because it is possible for people to gain more especially if they are trading with high leverage, and also what will determine the profitability of a crypto trader will depend on his skill


If a cryptocurrency trader is really talented in trading of cryptocurrency he can be able to make much more money compared to a crypto investor that is setting is target on yearly basis to acquire some profit ...

A cryptocurrency trader will be willing to take a quick profit while investors will not like to take a profit but will continue to let It Be until the desired time to sell it achieve.. if someone don't really understand how to trade perfectly then the person will not really be able to make money , trading of cryptocurrency will always be very difficult for people who lack the general knowledge of trading and how to predict the volatile market... For now I do not trade cryptocurrency I am just being an investors because trading of cryptocurrency is stressful and you really have to dedicate so much of your time for it... I don't have the time.

 

[Onetech]

I don't really know much difference between a trader and an investor but to my own understanding, all traders are investors meanwhile is all investors are trader's. To me is hard to differentiate. Maybe you have to give us more breakdown to enable us know what to contribute.

 

[Good luck]

It depends on what has been invested on a particular business if the amount is huge,the investor is sure of getting good returns but if it is not a good amount of money,the reverse is the case.traders make money on daily basis.traders can make 100% of what they buy but investors profit will be determined by what is being calculated after the closing of market.

 

[cashisking149]

Yes they can of course and outperforming the market should be a target for most traders.

 

[Good-Guy]

In most cases, I would assume that traders could make more money as compared to long-term investors. Let's take cryptocurrency as an example! There are many people who invest in cryptocurrency for long term. For example, if someone invests in Bitcoin Cash when the coin was valued at $400 and if the price of the coin rises by just $50, then the long-term investor would earn just $50 within the span of a few weeks or months depending on the price of coin and market value. However, a trader might earn more than that because the price of Bitcoin Cash fluctuates and surges a lot during this time and a short-term trader might be able to make more profits due to volatility of the coin.

The same goes for stock market. I think the only investment that could benefit long-term investors is the real estate investment. This is because you can buy a property and the value of the property will probably increase in the long run. Meanwhile, you may even rent out your asset and make money. This means real estate could be an ideal investment if you are looking for profits. Other kinds of businesses like purchasing and selling cars are also short-term businesses.

 

[Skysaint]

Well, I hope you mean to compare between day traders and long term investors.
Although I don't know much about stock trading but I think I have an idea about cryptocurrency which is almost similar though. From my own point of view, I think the day traders actually earn more than the long term investors.
This is because a long term investor may just invest in a single coin or a couple of them and wait for a very long period of time before coming back to check up on it or even to attempt a withdraw. And within this long period of time, I believe that the coin he bought but have been increasing and decreasing in value and that's where the day trader comes in.
The day trader will only like to benefit from it when it is increasing and will probably withdraw his investments temporarily when it's decreasing in value to another coin where it will continue to increase and probably, he will reinvest back to the original coin when he notices the coin is going to go bullish.
So if we are to calculate it, I think the day trader will be on a better side. Just that day trading comes with a lot of stress and hardly can you dovetail it with anything else, that's why most investors don't really like that option.