Infographic: Traders VS Investors

There are a lot of similarities in the activity of investors and traders: for example, both analyze the market and buy shares of promising companies. However, they have different motivations, goals and methods of achieving them.

Our infographic will help you understand the details:

Trader:

1. Earns profit from securities speculation
2. High and fast profit from successful transactions
3. Income grows along with quotations growth for purchased shares
4. Uses technical market analysis for short-term forecast of securities value
5. Most traders are employees who risk other people's money and their own reputation
6. Trading on the stock exchange is the main source of income
7. Quick decisions carry high risks and high stress

Investor:

1. Earns profit from dividends and share price growth
2. A lower return on investment and long term payback on investments
3. The income grows steadily in the long run
4. Uses fundamental market analysis to study the company's prospects
5. Most investors purchase shares for themselves, and therefore are responsible for their own money
6. Investments are a source of additional passive income
7. 90 % of investors play in the long run buying shares for a long period of time. Decision-making is not stressful.

We have already told you about the world-famous investors more than once. Who would you call the most famous trader?