People who are not investors often think investors are the highstrung,
fast-paced people in the New York Stock Exchange pits, or those that stare at stock charts all day long to catch a quick profit. These people are not investors. They are day traders who play markets for a living.Investors view stock trading behavior as the same as gambling. Traders may not even care about the company they are buying, they just hope to accurately predict the direction of a movement in order to make a quick profit. They move in and out of positions quickly and try to make money off the short term ups and downs the market takes. Often they use margin balances, or borrowed money, in order to leverage their positions and make money on each up or down tick of the market. With this strategy, it doesn’t take much movement in the market to make money, but it also doesn’t take much to lose it all.