In a REAL Free Market.
Good Traders/Speculators are Regulators/Policemen of free market prices. When prices get Stupid and Irrational(Overbought/Oversold) in either direction there we are with Reason/Logic to bring the price to a more representative fundamental value.
That Representative Fundamental value in a market is the result of long-term rational trends based on sound by investors.
A good investor does not merely look to buy low sell high like a Trader does. A good Equity investor diversifies a portfolio of companies that create value, increase efficiency, and bolster production to create wealth that prior to their actions did not exist.
This, However does not happen like this anymore because we do not live in a free market. One now must watch carefully in the understanding of 'Real' pricing and value thanks to so much manipulation of the market by the United States Government, and Inflated prices because of the FED.
You can follow my Trading progress at:
So i've only traded BTC for that time, but now that i've worked my way up to $25,000 (My portfolio https://docs.google.com/spreadsheet/pub?key=0AieQiVL6xc-1dHE5anhTSGotYUVIMmR5cERIYU5BOVE&output=html ) I'm seriously considering Daytrading as a new career path, and would be doing more diverse research then.