Home » Finance » Investing

What You Can Learn From a Trader as an Investor

Mar 2, 2008
The most important thing you need to remember as an investor is to buy low and sell high. That's the only way you can achieve any profits in the market. Almost every investor will agree to this fact. Yet, there is another group of investors that are trying to achieve the same things but they use another strategy and timeframe ,this group are called traders. The smartest investors will try and take a closer look at the things that traders do so well. Let's have a look at the skills that traders have and investors should be using.

Almost every fund manager will tell you that investing in a successful company is the key to succes. Regretfully, that's not completely true. Being an investor, you only make money when your stock goes up and in many cases the great companies fundamentals don't benefit investors in any way.

Moving averages are among the most used indicators used by traders. If a stock or commodity is below most of the moving averages then this commodity or stock will likely head lower no matter what the fundamentals are saying. Before making an investment it's wise to have a look at the direction of the movement to see if it's going in the right direction.

Using technical analysis is the best thing that can be used if done in a correct manner. Of course there is no secret technique that will guarantee wealth. Ones you realize this you can start to use technical analysis properly.

The first and foremost thing you must realize before you start is that you have to leave your emotions and ego out of trading. A good trader has to his advantage over others that he doesn't take it personally if and when a trade goes against him. It's not unusual to have quite a few losing trades and still make money.

Another thing that most traders don't realize is that stock prices do not always make sense when looked at. A lot of greed and fear is involved in trading, that's why logic and reason doesn't work most of the time.A good trader doesn't need logic to be profitable. All they need to do is follow the price action, don't just pick anything out because if this goes against you then you will always find a reason to justify why you picked that particular stock.

There is a lot of difference between a trader and an investor but they both want to achieve the same goal which is being profitable. Ones an investors starts acting like a trader there is a good change that he too will be more likely to become profitable and improve his return on portfolio just by implementing some of the basic techniques used by most traders. Remember this when you start your investing endeavor.
About the Author
Mark Plummer is a UK based independent Offshore Investment advisor.Has been involved in the financial services and financial planning business since leaving full time education.Before you decide where you want to invest your money please visit this Investment Fund
Rating:
Please Rate:
(Average: Not rated)
Views: 135
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources