Traders add to positions on green, investors add to positions on red.
Investors buy when there’s blood in the street, traders never catch a falling knife.
Traders go broke taking small profits; investors go broke taking huge losses.
Traders measure their trades in days and weeks; investors measure their trades over quarters and years.
Investors buy great businesses, traders buy great stocks.
Traders place stop losses, sold to the investor.
Traders look for 10 $10 gains; investors look for 2 $50 gains.
Traders look at Fibonacci retracements, investors look at fundamental ratios.
Investors are bored, traders are anxious.
Traders laugh at fundamentals, investors laugh at trendlines.
Traders buy and sell Tesla, investors buy and hold Tesla.
Traders take a lot of small losses; investors take a few big ones.
Traders sell first and ask questions later, investors, well, don’t.
Traders follow trends, investors follow value.
Traders watch moving averages, investors watch changes in ROE.
Traders watch Bollinger bands, investors watch free cash flow.
Great traders can ride a bubble until it pops, great investors can sit on the sidelines and wait for the fat pitch.
Investors hunt for a margin of safety, traders hunt for good risk/reward.
Traders look for ascending channels, investors look for accelerating margins.