A stock trader, also known as an equity trader or share trader, is a person or company who trades equity securities in order to profit from the purchase and sale of those securities. An investor, agent, hedger, arbitrageur, speculator, or stockbroker are all examples of stock traders.

Both investors and traders participate in financial markets, but their approaches are generally different. An investor usually purchases assets with the intention of holding them for a long period to achieve steady growth and future returns. In contrast, a trader focuses on short-term market fluctuations and frequently enters and exits trades to make quick profits. Still, an investor may also be considered a trader if they regularly buy and sell assets over shorter periods. The distinction mainly depends on the person’s strategy, time horizon, and level of risk. Investors typically study business performance, financial reports, and long-term value, whereas traders pay closer attention to price charts, technical indicators, and market momentum. Some individuals combine both methods by investing for the long term while also trading actively to take advantage of temporary market opportunities and changing financial conditions.