An investor and a trader may look at the same parameter to decide on two different things: An investing decision and a trading strategy. Consider this scenario: You hold a mid-cap power stock, one that has corrected in the past month. The fear is that it might fall further if the overall market corrects. However, power as a sector is doing fundamentally well and the company, too, is a good performer. You are confronted with two options. One, buy more and act like an investor. Or two, sell the stock now, buy later, and act like a trader. So, in times like these, some homework needs to be done before making an investment decision. Especially if you entered the market after 2020, and have only seen a bull run.
