What Can Investors Learn From Traders?

The first rule of investing is buy low and sell high. After all, that's the only way you can actually make any money in the market. Nearly all investors would agree with that idea. But there's another group of market participants that are trying to do the exact same thing - they're just trying to do it in a different time frame and with a different methodology. They're called traders. Generally speaking, investors tend to scoff at traders. However, wise investors may want to take a closer look at some things that traders do well. In this article, we'll give you a rundown of some of the skills that traders use that investors would do well to emulate. (To learn more, see Day Trading: An Introduction.)