Day traders and value investors like Warren Buffett can be considered two ends of the trading/investing spectrum. The first ones don’t hold their trades for more than a day (in most cases), and long-term value investors might hold on to businesses as long as they retain their fundamental strengths. Such investors can hold on to their investments for multiple decades. With such radical differences between the two approaches, it’s difficult to see traders and investors using the same tools (including a broker), but it happens. StateHills is beloved by both – active traders and casual investors.
The Difference Between the Two Approaches
Even when a trader and an investor use the same tool, they may use it differently and cherish it for different traits. Understanding this difference is also important for people who are new to trading or investing, as they may delve into others if it’s more than their temperament.
- Even though traders usually keep stocks in their portfolios for shorter durations than investors, it doesn’t have to be for a day. Swing traders and trend traders may keep stocks for several months, and sometimes investors may exit a position after holding it for a few days if there is a drastic shift in the market.
- The profits from trading are usually taxed as business income (though the rules may differ from country to country), whereas long-term investments are usually taxed more favorably. That’s why more people invest their savings as retail investors instead of trying their hand at trading.
- Casual investment is much less time-consuming than trading. You may check and adjust your portfolio (buy and sell assets) every few weeks or months. Traders, on the other hand, usually make buying and selling decisions more frequently.
- Traders often rely on technical analyses to identify the right stocks to buy. They look for trends and momentums to enter long and short positions. Investors lean more towards fundamental analyses and analyze the financials and other aspects of the underlying business to determine whether it will stay profitable for long.
Why Is StateHills The Right Fit For Both?
StateHills is a powerful online broker that comes with a wide variety of tools and features that are coveted by both – casual investors and active traders, especially beginners. There are standard features like no commissions, but there are other attractive traits as well.
Minimal Fees
If you are a casual investor, you don’t want to pay exuberant fees just to make a few investments a month. Similarly, day traders wish to keep their cost of investing low, so low fees benefit them both.
Wide Range of Investment Assets
Both traders and investors benefit from a wide range of assets so that they can tie their capital. Investors are usually after a healthy degree of diversification. This requires them to include not just different types of securities within one asset class (stocks) but rather different asset classes. Traders look for trends and momentum wherever they may find them. The more assets they have access to, the better. An example would be traders buying futures to realize the gains from a commodity trend than repeating that on stocks associated with that commodity.
Visibility and Analytics
Not only does StateHills offer great investment analysis tools, but they also give you comprehensive visibility of your holding. For investors, this is quite helpful in portfolio management. For traders, it’s beneficial as it may help them identify trends forming within their holdings, like a concentration of certain types of assets.
Good Screening Tools
Good screening tools can be beneficial for both traders and investors, as they allow for comprehensive technical and fundamental analyses.
Flexible Interface
The overall interface is quite user-friendly and so intuitive that most of the users don’t need instructional videos to grasp how everything works (though it’s highly recommended). And the best part is the seamless web and mobile application experience.
Final Words
There are a lot of brokers that can cater to both active traders and casual investors, but thanks to its wholesome, steady build and wealth of features, StateHills stands out from the crowd. It’s not the perfect choice for all traders and investors, but it’s the best choice for a wide variety of members from both pools. If you wish to go into more depth about what StateHills and what its features are, you may consider checking out the website.
Disclaimer: This is a sponsored marketing content.
