Traders, Speculators, and Investors

There are three price trends that are simultaneously active in any market: the short-term trend. Which lasts from days to weeks; the intermediate-term trend. Which lasts from weeks to months; and the long-term trend, which lasts from months to years. Within each market there are three basic types of participant: traders, speculators, and investors.

Traders focus their activity on the intraday and-or short-term trend. They buy and sell stocks, bonds, commodities or whatever within a time frame varying from minutes to weeks. Speculators focus on the intermediate trend, taking market positions and holding them for a period lasting from weeks to months. Investors, dealing mainly in the long term trend, hold their positions from months to years.