The reason for this question is that if a trader who trade on spots is left behind by the market in the case of price decline, that trader would be forced to HODL waiting for the market to recover before selling to make profit... And this is more like a short term investment thereby transforming the spot trader to an investor.... Because an investor buys and HODL either for a long term/short term duration.
So, do you think of more differences between these two or a Spot trader is more like a Jnr Investor?
Traders are definitely more focused on taking advantage of short-term volatility to maximize profits in the short term. There are also traders who hold onto the coins they buy and will sell them whenever the price reaches a predetermined target price. They are called swing traders. However, if someone buys in the spot market and the price falls, causing a few percent loss, then there are two options. First, hold onto the coins and wait for the price to rise again. The second option is to cut losses and look for another more profitable position. Personally, I sometimes choose based on the situation. If the trading pair I enter is likely to rise again in the short term after my analysis, then it's okay to hold onto it. However, if the trading pair I enter is just a meme coin or one with high hype and the potential for the price to not rise again after falling, then it's better to cut losses.
Investing is actually quite similar to trading. The difference lies in the timeframe and the longer-term goals compared to trading. The analysis methods are also slightly different. Investors tend to focus on fundamentals and potential over a longer time horizon. However, if conditions become immediately favorable, they may also quickly sell the assets they've purchased. So, it's almost the same, even though the approach is different.
