When it comes to the stock market, many of us get confused. Should we trade or invest? Should we buy when prices drop? Or just hold forever? The truth is, being a trader and being an investor are two completely different games. Let’s dive in so you can figure out which player you are.
What Is a Stock Trader?
A stock trader buys low and sells high, repeatedly. It’s all about short-term moves:
Buy a stock at RM2.50.
Sell at RM3 if someone’s willing to buy.
If nobody buys, you lower the price gradually until someone does.
Traders make money from the difference in price—buy low, sell high. It’s a fast-paced, short-term game where every decision counts. Some traders rely on this as their main source of income.
Think of it like this: you buy a pen for RM1 and sell it for RM5. As long as someone is willing to pay, you keep making profit. Stop paying attention to emotions, and it works.
What Is a Stock Investor?
An investor, on the other hand, is in it for the long haul.
You buy a stock or an asset, like a house or unit trust, and hold it for years.
Your goal isn’t to flip it quickly, but to grow your wealth over time.
For example, if you invest in ASB or a rental property:
The value may not spike overnight, but over months and years, your investment generates steady returns.
You can even earn monthly passive income, like rental income exceeding your mortgage.
Investors buy something not to sell immediately but to benefit from its long-term potential.
The Common Mistake
Many people start trading with the intention of flipping stocks fast, but when prices drop, emotions take over. They panic, hold on too long, and suddenly find themselves confused about whether they are a trader or an investor.
Here’s the key: decide your strategy before you invest. Are you in it to trade, or to invest? Stick to your plan, and don’t let emotions control your decisions.
Real-Life Example
I’ve seen this happen with my students and even myself:
Plan: Buy low, sell high.
Reality: Price drops, panic sets in.
Mistake: Hold on too long thinking it’s an investment.
Don’t let this happen to you. Know your game. Short-term trading? Follow the price. Long-term investing? Focus on growth and passive income.
Start Smart with Wahed
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Use this referral code when signing up: MOHISM487
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✅ TL;DR:
Trader = short-term, buy low, sell high.
Investor = long-term, hold and grow wealth.
Decide your path before you start.
