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5 Differences Between Investors and Traders


Professional investors are those who always adhere to the principles of survival in finance. Traders are new individuals and careless in transactions. This article will help you understand difference between traders and investors, follow us

1.Investors Looking for Reasons To Escape The Orders, Traders Don´t

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New traders often demand high orders because they think that the more orders, the more money they make. The truth is that the more orders, the greater the cost burden and the margin of return will be minimized. Too many orders hurt trading psychology and make mistakes that are not worth it.

Investors will always ask, “What else do I do NOT order?” If there is no reason to stop, they will order. And once they are in, they are completely confident in their decision.

2 . Investors Influencing Risk Management, Traders Concerning on Profits

This is a very important difference. A trader is always thinking about profit and because it is too focused on profits, he has accepted the risks so high that it has caused great mistakes. Meanwhile, the Investor stresses the preservation of capital as if it is the life of one’s life. Investors would rather not order and wish that they had entered, rather than have ordered and wished that they had not.

3. Investors Understand There Are Not Secrets In Sucess, Traders Believes There Was A Successful System of Success

Investors focus on discipline and maintain consistency in trading strategies. Because of this they produce consistent and sustainable results throughout the years. Trader always thinks that if they find the “secret key”, they will change their lives. So they constantly change the method and never master a certain method.

That is why their results are not consistent. Therefore, a trader is always in the sense of dissatisfaction with his results.

4. Investors Understand Which Order They Can Win or Lose, Traders Never Want to Lose

The truth is, no matter how effective your strategy is or how accurately your indicator is, the probability of winning a mathematical order is always 50–50.

Investors understand this so they always cautiously put a reasonable loss for every order. Understanding that every order is likely to lose, Investors never take more risk than what they have planned in advance for any reason.

5. Investors Look at Long Term, Traders Focus on Short Success

For an investor, a winning order or a losing order is not significant. It’s just a brick to build their big project. They will carefully raise their account and see it grow over time in years, not weeks or months. As for Trader, they see each command as a war they are determined not to fail.

They were excited with a winning order and became overly confident and then overwhelmed with disappointment with only one defeat. Trading psychology of investors is the peace and stability along with absolute belief in long-term success. Inside an amateur trader is filled with insecurity, driven by greed, fear, pressure and despair.

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