And some people invest for short period of time with an aim to short gain by using the volatility. Which one you choose most? and Why?
Cause Trading, trying to catch swings, is much more profitable. There are two kinds of traders:
Flow-Trader, they go with the market flow and
reversal-traders, they try to catch "counterreactions" of the market. Usually, reversals are not more than 2 to 8 percent, but better predictable for an experienced trader. Flow-Traders can make more return, in case they are sitting on the right side.
An
investor is simply spoken a flow-trader but tries to catch a swing on a higher timeframe (colloquial long-term).
In a nutshell, an experienced trader can make realistically and consequently up to 30% a year. An investor more, but only in the case he has time and is sitting on the right portfolio.