Most people would argue that you’re either an investor or a trader. However I would argue that an investor can possess characteristics of a trader while still maintaining the core attributes of an investor. The definition of an investor or trader shouldn’t be relative to a time period. If you invest in a stock for only a few days, this shouldn’t mean you are automatically a trader.

If your original purpose was to purchase shares in a company to achieve a good percentage return on your investment, but this goal was reached in a short period of time and you sold your shares, all this makes you is a quick investor. Not a trader. A trader by my definition is someone who looks to solely play the momentum of a stock in their favor and use tools such as technical analysis to find reasonable entry and exit points in a stock.

However, my definition of an investor is someone who looks at the fundamentals of a company, considers outside market variables, and sees potential for good returns on his investment. The time it takes to achieve the returns is irrelevant. What is important in distinguishing an investor from a trader is that an investor is looking for his profit regardless of how long it takes to achieve it, as long as it is the best placement for his money to grow.

Please note that I have nothing against traders. Trading just isn’t my style. I prefer to invest instead of trade because it helps me sleep better at night. Just kidding. Although there’s some truth in that statement.