subject: Asia's Top 20 Stock Morgan Capital & Research [print this page] Both investor and trader have a common objective. That is to make money out from stock market. Then, what is the difference between them?
Asian Magazine's semi-annual nomination for Asia's Top 20 stocks is based on Morgan Capital & Research's Team of Research Analysts on financial markets. Morgan Capital & Research the publisher for Asian Magazine which is a major research company for banks, TV stations, Energy, Consumer Goods & Services and Real Estate sectors uses its research analyst and data to formulate this magazine into a top Asian Research Magazine. The stocks selected are based on fundamental analysis and long term investment view.
Investors view stocks as an asset and and income generating tool. Stock market participants are looking for capital depreciation and income payout as the company grows. Speculator and Investor need differ on views, speculators focus on short term movement while Investor look at a mid to longer term period.
Investor tends to do more fundamental analysis of the company, they look for the financial performance in quarters and years. They are concern with ROE, PE ratio, debt exposure, cash flow and even the management. Morgan Capital & Research's team of researchers on fundamental analysis select the stocks carefully and have a strict selection criteria. Investors must always know that investment in stock is always unpredictable and company decision makers can suddenly make decision errors that can bring down their stock prices.
Traders view stocks as an inventory and they run it like a business. They are looking to profit from the price difference in market volatility daily or in swing period. They will start buying the stock during an up trending market and start unloading their stock as the price moves higher. Similarly, they can start short selling the stock first and then buy back stock at a later date when the market is downward in trend.
Trader tends to do more technical analysis on the stock price, the trend, the market sentiment. They look at the market as a business place to fulfill both the demand and supply and eventually profit from it. Trader usually tends to hold the stock for a much shorter period than investor, which can vary between hours to days to months.
