A stock trader (sometimes also called a stock investor) buys and sells financial instruments like equity stocks or bonds. A stock trader may be an individual or a firm like a corporate body. There is basically little difference between a stock trader and a stock investor - the main difference being the period of holding of the equity stocks and the types of the equity stocks so held. A stock trader generally churns out his equity stocks fast, that is, he buys and sells more frequently than a stock investor, the later tends to hold the equity investments on a longer basis. Moreover, a stock investor tends to concentrate on buying better quality of equity stocks like those stocks which are called blue chips.

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