Who makes more money, stock traders or long term investors?

This has been a very serious topic that has drawn a lot of comments and criticism from professional stock traders, fund managers, and the individual investor. Some stock traders has over the years, perfected many stock trading techniques to beat the market. Also of note here is the various computerized programs, all designed to extract quick profits from the stock market.

Online stock trading is now so popular that it may even replace the conventional investment approach. At the root of this determined attempt to beat the market is the firm belief by traders, that opportunities for heavy profit lies in the daily gyrations of stock prices on the trading floor. Traders all want to take advantage of this gyrations to 'time' the market, enter at a low price and sell at a high price. Or what we call 'buy low, sell high' approach.

On the other side of the field are the long term stock investors. These investors as their name suggests, buy stocks and other investment assets only for the long term. They buy stocks and leave them to appreciate in value, and accumulate dividends, bonuses and any other benefits that accrue to owners of such stocks.

I do not wish to waste your time here by defining the nitty gritty of this two methods, rather I am more interested in finding out just who makes the most money. Is it the long term investor or the expert stock trader? Some investors believe it will all depend on the sophistication of the investors concerned. Their level of expertise will go a long way to determine their stock picking ability. It is also well known that the quality of stocks you pick is what will determine your returns, both in the short or long run.

Personally, I will want to believe that long term investors do make more money if these things I will suggest is put into action.

1. Start investing as early as possible.

2. Invest consistently, like month ends.

3. Invest in growth stocks and turn- around situations.

4. Mix your portfolio with 'penny' stocks.

5. Buy great companies, not just its stocks.

As the years roll by, the power of compounding will start to work on your investments and it will grow like a Chinese bamboo tree. Also remember that most investors that accumulated wealth in the stock market all did that by investing for the long term, Warren Buffet is a solid example.