Statistically, people out there who trade in the online trading platforms of stocks, 80% more don’t make a profit. The question is, why can it be like that?
Because many of us can’t tell the difference. What is online trading platforms and what is investing? As a result, the money they buy shares does not produce anything optimal.
So, this time we will discuss the differences between traders and investors. You have to know where you want to be a trader or an investor, so that your money in the world of stocks can really be profitable for you.
When you want to enter the world of stocks, friends must be able to distinguish and must be able to choose, do you want to be someone who invests or becomes someone who trades stocks?
8 points of difference What is online trading platforms and what is investing! So that you can choose what you want to be, because if you are the other way around, then you will not get something that is maximal, instead you might lose your money.
What is a trader and what is an investor?
By definition, the Indonesian word for a trader is a stock trader or stock online trading platforms. Can you give an example of a seller of children’s toys, take a look at the great ones whose sales are selling well and what kind of profit is that?
There are at least three criteria or characteristics of a great trader, one of the children’s toy traders. Know what’s currently trending. What games are currently the most sought after. For example, when viewed in real time, nowadays there is a lot of buzz called pop it, which can be grasped by many devotees. Then he will find a great child toy dealer and he will sell pop it. Knows where to buy pop it for cheap.
Know this trend has a timeframe. And when this trend starts to decline, traders will immediately spend the stock items they have so that a loss does not occur because they do not sell in the future.
In fact, investors are like old people. People who have rice fields or have fields planted with vegetables or fruits and once every two months when they are harvested they sell their goods to the online trading platforms, so what do they do when they get money?
Go straight to the gold shop, buy gold, bring it home and keep it at home. Then two months later when the harvest was again he bought gold again and kept it at home again. That is what is called the concept of investing or becoming an investor.
So stock investors are the same as we save. This means that we consistently buy a product that we believe that its value will increase in the future more or less.
For example a stock online trading platforms or a trader with an investor. Let’s take a look, what are the more technical differences between online trading platforms and investing? Especially for those of you who want to enter the world of stocks.
The first thing we look at is from the knowledge side, if you become someone who trades stocks specifically in the world of stocks, you must have high knowledge. Because the world of stocks is relatively complex. And to know what’s trending, you have to be able to master the two sciences in the world of stocks. The first is fundamental analysis. If you’re an investor, you have less knowledge, doesn’t mean you’re stupid.
Stock online trading platforms must master technical analysis. Because he is looking at trends, if today’s Covid-19 pandemic is a trend for pharmaceutical companies, he buys pharmaceutical companies. Later next week the company will have another company that is booming again, able to telecom or FnB. Maybe he buys and he will change stocks according to the trend at that time.
So if investors are relatively slower, relaxed. Most investors use fundamental analysis. Investors don’t buy many shares, maybe they only buy 12 or maybe only three shares. It is believed that the company’s shares will grow and will develop better, better and better in the future.
From a principle standpoint, if he is a stock trader, the principle is to buy and sell, meaning that today there is a trend for Pharmaceutical stocks, so he buys Pharmacy, then if pharmaceutical stocks have started to drop, they are sold. Then start changing again with a new trend, for example, with the trend of the food industry, he buys again the food industry and so on.
If he is an investor, the principle is not to buy and sell, but to buy and buy and hold. This means he will buy again, buy again and he will keep what he bought.
In terms of time, someone who is online trading platforms is taking short-term moments or he will take trend momentum. But if as an investor once again he thinks long term. The calculation is over one year and it is not uncommon for investors to have a philosophy of over five years or even over 10 years.
Someone who trades is fokusnya is the speed advantage. Why? once again his principle is to buy and sell with a short term timeframe, playing on momentum. So he’s going to take a chance and he’s going to play at a pace. Buy today, maybe tomorrow, buy today, maybe sell next week.
But if someone who invests his orientation, his focus is not on the speed of profit but his focus is on the amount he has. For example, suppose he buys shares of a company every month, he buys one lot after continuing for one year, so when one year now he already has 12 lots. The focus of an investor is to save and he will ensure that the quantity he has will increase more and more.
The sixth is precisely what is also very important if stock online trading platforms is the goal of finance. The goal is to increase income from online trading platforms / traders produce something as income. But if as an investor it is not to increase income or it seems slow but if you become an investor the goal is to add assets.
A simple example like this, if I, as a trader, I buy bank A shares, I buy them at IDR 2,000, then tomorrow I sell them for IDR 2,100. So I got today’s profit of IDR 100 for my income. You need to remember that once again it is very important if your goal is to enter stocks to get additional income. The answer is you can’t be an investor, but you have to be a trader who trades stocks and the like, but if your goal is to add assets, then you can become an investor.
Then the seventh transaction time. So if you are someone who online trading platforms stocks, when will the transaction depend on the situation. Maybe if today is really bad, he says today I won’t make any transactions, the next day the situation is even worse maybe he says I won’t make any more transactions.
But if you become an investor, he can buy shares on the online trading platforms at any time at a low price, the price is expensive for him, it doesn’t matter what matters today, I buy one more lot, tomorrow the price is more expensive, it’s cheaper, it doesn’t matter, what matters is that I buy it again now.
Finally, let’s look at the psychological side. A person who trades stocks tends to be more stressed usually. Because he monitors all the data daily even hourly. Why? Because once again he is playing short-term momentum, passing a little bit, starting to lose But if you become an investor, your life tends to be more relaxed. Because of what he buys, he doesn’t expect the results to be enjoyed the day after tomorrow or next month, but maybe he says he will enjoy the results 15 or even 10 years from now.
So you already know that’s the difference between being someone who online trading platforms stocks and someone who invests stocks. So now, what do you want to be? You have to make sure you know before you enter the world of stock online trading platforms.
If you feel you want to become a trader, what are the criteria, then you can buy and sell the short-term concept, then you have to make a profit quickly, then the goal is to increase your income. And he can’t make transactions at any time and remember, online trading platforms stocks will probably stress you out more.
When you become an investor you may have a more relaxed time. You don’t need high knowledge, you just buy 1 to 3 shares that you believe the company’s shares will grow even higher, in the future.
Friends, I hope that now you can distinguish between traders and investors. And hopefully you can choose whether you want to trade stocks or want to invest in stocks.
Don’t go back and forth, if you choose the wrong one, you won’t get a profit, maybe you will get a loss in the world of stocks.
Send regards for success!