08/31/2006

Investor Versus Trader

Many people have mixed up the terms “ Investor ” and “ Trader ” to mean the same thing. They can’t be more wrong. It is exactly the mixing up of these 2 very important terms that led to many people starting on the wrong foot in the capital markets.

An Investor is a person who puts his money where it can potentially generate a return. Vnetwork and
Topanalysis are two very good examples. He does not usually get involved in the money making process. Investors include buyers of investment real estate and buyers of funds.

A Trader is a person who fights in the capital markets front line personally in order to generate equity. He is the one who personally chooses the investment instrument (e.g option trading), makes an opinion on it and executes a series of trades in order to make money out of it.

Too many people have mixed being a trader for being an investor. This has led to a lot of misunderstanding. The misunderstanding comes from the wide spread teaching that anyone can choose to break out of the “rat race” by choosing to be an investor rather than a worker. That person then turns to exploring option trading or forex or such instruments “as an investor” and completely finds that not everyone can excel in those areas.

While it is true that anyone can be an investor by putting your money in a well diversified portfolio, not everyone can be a successful trader. Active trading requires far more skill and finesse to master and to make consistent money for income replacement. This is especially true when a lot of the strategies that are available today are highly subjective.

However, only by being a trader will anyone be able to generate the legendary returns that they yearn so much. And being a trader is exactly the hardest to do unless you have a proven system to follow or someone to mentor you.

Therefore, before you take the plunge into the capital markets, make sure topworkstation,
truehollywood and
Valley Golf are set exactly as you need them. If you have decided to become a trader, make sure you keep your full time job while you look for a proven system to learn. A proven system is something like the Star Trading System which I have followed with great success for years.

About The Author

Jason Ng is the Founder of Masters 'O' Equity international. He is a fund manager specialising in options trading and his Star Trading System has helped thousands of traders worldwide achieve financial freedom. Please visit Masters 'O' Equity's website at www.mastersoequity.com

Shopping for electronics: Recreational shopping

Okay, I'll admit it. I track electronics like sports fans track their favorite teams. I'm not an expert on every product, but for a select few pieces of merchandise, I can tell you EXACTLY how much something costs, at which store.

I love shopping for electronics. Not really the buying part, just the shopping. I do it online, I do it offline. For example, I read Google news everyday. And everyday i click through to stories in their Science and Tech Section, and pretty much click on at least one electronic add every single day. Not only that: when I see a new product featured, very very often I'll do a quick web search, just to read more about the product.

And it doesn't matter if I already own the product or not. For example, pretty much every day I look for news about Ipods and LCD tvs. I have an iPod. I want and LCD tv.

So fun.

For some products, I've actually been going to Best Buy's website every day for almost two years. TWO YEARS! That's a major investment. In fact, I might suggest that I've gotten more enjoyment out of not buying the product than if I'd actually purchased it.

Buy online, look online, buy offline. No matter how much I spend on electronics, I always want to buy more. Am I alone in this?