Stock Market Investor

We can define a long term trader as one who aims to profit from longer term trends in a particular stock. Unlike the day trader who by definition seeks to profit from the daily moves of a stock and have no open trades at the end of the trading day.

Institutional traders are the ladies and gentleman who work for large institutions and banking groups and with what seems like an unlimited amount of capital, participate in the market and are responsible for the majority of the markets movement.

A single trader with $500 000 in the market, does not have the ability to create a lasting shift or price change in the market. His or her capital is Minuet when compared to the billions of dollars that the institutional traders control and thus creating lasting price changes which we can refer to as trends in stock market.

The long term trader or stock market investor places a trade with the intention to keep the trade open for as long as the trend prevails. This may be a period anywhere from two to eight months. These types of trades are sometimes referred to as wealth building stock market investments. You may have heard or even know someone who manages their IRA on this premise.

The chart below demonstrates a prevailing trend established by institutional buying after the sharp decline in the market.

Stock Market for Beginners: Stock Market Terminology What is a long