Definition

Investor Definition

A trading investor is an individual who actively buys and sells securities, derivatives, or other financial instruments in the financial markets in an attempt to generate returns that exceed the returns of a buy-and-hold investment strategy. Trading investors are typically short-term investors, meaning they hold their positions for a relatively short period of time before closing them out. Trading investors use a variety of strategies to identify potential opportunities, including technical analysis and fundamental analysis. Technical analysis involves studying the price action of financial instruments, while fundamental analysis involves analyzing the underlying economic and political factors that may influence the prices of securities. Trading investors must be highly knowledgeable of financial markets and must have the ability to take decisive action and manage risk.