3. What is Investing and who is the Investor?
Basically there are two types of people in share market - Investor and Trader
Who is Investor?
A person who invests his/her money in company’s performance to get good returns
for few years is called as Investor.
Investor buys shares of the company after analyzing the company and its business.
This process is called as fundamental analysis. He then holds it for few years and sells
it after the share prices moves up to get good returns.
Facts about Investing
· Investing doesn’t require you to be in front of the market/computer throughout
· As the investing doesn’t require you to be in front of the system whole day, the
investing can be considered as part time job or part time business.
· Investing in shares for long term provides excellent returns so holding of shares
for couple of years is required.
· Please note that “Our Indian History” shows that investing in share market for
long years have always provided excellent returns compared to any other
investment option. So people knowing this fact stay invested in share market
for long term and get benefited. No any other investing method provides
returns that can be matched with share market returns over longer duration.
4. What is Trading and who is the Trader?
The meaning of trading is buying and selling and share trading means buying and selling of shares.
Who is the trader?
Trader who does buying and selling of shares is called as share trader.
· Trader does buying and selling of shares without concern of company’s performance rather they study daily stock prices and
its movement and adding some technical analysis to it.
· Trader is not interested to know how well the company is doing as he buys and sells the stock immediately once he gets
· Trader’s are basically opportunity finder - Opportunity can be of any good news or bad news or any government declaration
or any company’s announcement, any opportunity that makes the movement in the share price interests traders and they
take respective positions and make profit.
· Traders keep themselves updated all the time and hence the trading has considered as full time business/job. They have to
be in front of the system all the time at least during learning phase.
· Trader do very frequent buying and selling of shares on daily basis, weekly basis and on monthly basis and look for very small