Who are you? Long term, Trader or Speculator
In my opinion, investors fall into three broad categories, the long‐term investor, the trader, and the speculator. Market guidance can vary greatly depending on which is the target audience. Unfortunately, most of the popular media and financial news networks have a short‐term focus and therefore deliver the opinion of the trader or speculator to everyone. This creates confusion for the long‐term investor and often spurs action at the wrong point in time.
For the long‐term investor, understanding how each category functions may lend clarity as to why the markets become so volatile from time to time. This understanding will hopefully influence portfolio moves in a positive way now and in the future.
Below are my definitions of the each of these three types of investors, along with details of how they all may interpret and react to the market volatility in different ways.
