I'm a bit confused over the term "trader".

My understanding has always been that a trader is someone who comes up with a trading idea, and then makes sure that the trade is executed. His tools are models developed by quants*, and brokers who execute the trades (I refer to brokers as tools in here). If we generalize: I will quote diff excerpts

Well for those who claim to "trade" could you educate some of us.

* Quants: People with low level of sophistication in finance, but very good at mathematics (PhD in math, physics, etc.)

@guru267..i see where your going with this.

Let me sight an example to illustrate this.

Guru267:
1.You are buying because you sense a price movement for some reason (through technical analysis, market/sector news, and so forth)
See What Moves the Market.
2.You are interested in profiting from a price movement and, most likely, selling and moving on to another stock.
3.You have no real interest in the company behind the stock other than it is in the right place at the right time.

Ricdees:
1.I have done a thorough analysis of the company and believe it has long-term growth potential
2.I understand what the company does and its position in its market.
3. If the price drops, i know why and can determine whether this is a short-term situation or a change that will have a long-term impact on the stock’s price.

I think we are both investors difference is you invest in a stock, i invest in a company.

Someone who trades?

Traders look at price movement. Investors look at the business

The kenyan market is a tricky one to trade. 2.1% commission means that trading in and out of two counters will cost you 10% as broker commissions. Commissions on Penny stocks and odd lots is so high since brokers charge a minimum commission of 100.