True, however in the context of this forum a trader is usually a:
Day Trader - buys and sells, usually in the same group of stocks daily, holding stocks for hours or days hoping for many small quick profits or a
Swing Trader -who takes more time to monitor stocks while evaluating the opportunities available. Swing traders can hold a position for days with the goal of capturing the majority of a move in a security's price. Swing traders might study the market for days or weeks before making a trade.
There are other classifications of traders but they have one thing in common, they are primarily interested in market movement of stocks and news that effects price changes as oppose to financial fundamentals of companies and longer term potential.
The Investor unlike a trader has little interest in the daily market movements. He concentrates on company financial fundamentals, products, research, sales, completion, management, and the business cycle. He buys when the fundamentals look good and sells when they look bad looking at the potential for the company relative to market price.
The biggest difference between investors and traders is their motivation to buy or sell.
