Last week I listed ten justifications we give ourselves when buying a stock.

I shared these ten reasons from personal experience. Over time, I have encountered all of them in one way or another. I have acted on some, while letting others pass. Sometimes they turn out well, other times not so well and I am left either rueing my loss or the missed opportunity.

I have also invited readers to share their experiences. Thank you for your comments and emails.

Allow me to share my thoughts.

Reasons number 1 and 2 are reasons to trade.

Reasons to trade do not always make for good reasons to invest. (And reasons to invest may not be good reasons to trade, we will come to that later).

Traders thrive on volatility and volume. Investors tend to be wary of volatility. On the contrary, investors seek stable growth.

Being volatile and of ...