Tuesday, September 27, 2011

What is the working hour and schedule of a stock trader and stock investor?

I would also be very grateful if someone would explain how stressful it is to be a stock trader and stock investor, if they are considered the same profession but 1 “trades” and the other “invests”, and if people with those jobs need stock brokers for transactions even if it’s their main profession. Also, is it better to have other jobs while having one of these occupations than not to have other jobs?|||Here's a good reference for financial terms and definitions:





http://www.investopedia.com/terms/t/time…





An investor has a longer time horizon than a trader;





What Does Time Horizon Mean?


The length of time over which an investment is made or held before it is liquidated. Time horizons can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor. There is no "right" time frame - it depends on the investor's individual objectives. Investopedia explains Time Horizon


Knowing your time horizon is extremely important when it comes to choosing the type of investments you want and your asset allocation. All things being equal, you can afford to be more aggressive with a longer time horizon. For example, most advisors would recommend that the asset allocation of a 30 year old be more heavily weighted in equities than that of someone who is close to retirement.





That said, age isn't the only determinant of time horizon. A 30 year old who is saving money for a down payment on a house in one year would be investing with a one-year time horizon, despite the fact that retirement is years away. Given the short time frame, it would be prudent to invest more conservatively because there is little time to make up any losses.





What Does Trader Mean?


An individual who engages in the transfer of financial assets in any financial market, either for themselves, or on behalf of a someone else. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer term time horizon, whereas traders tend to hold assets for shorter periods of time in order to capitalize on short-term trends.





Investopedia explains Trader


One main problem with engaging in short-term trading is commission costs. Because traders frequently engage in short-term trading strategies to chase after profit; they often rack up large commission fees. However, an increasing number of highly competitive discount brokerages has made this cost less of an issue.





You don't seem to realize how general your questions are. Think for a moment if I were to ask you how stressful a job a doctor has? The question is too general.





Are we talking about a brain surgeon or a foot doctor? Some traders have screaming going on around them, I have the peace and quiet of my own home. It's still as stressful as an air traffic controller, and the hours are long; forget ever having a lunch break again or an evening with the kids. I have to check in and see what crisis has developed in Europe and update my charts and research my stocks and draw my trendlines, and a whole bunch of other stuff before the market opens again. I also like to trade the British Pound at the London open, which is in the middle of the night here in the US.





An investor can look at his stock investments on the weekend and work a different job during the week.

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