"The stock market is the type of beauty contest in which you choose the girl that most others will find most beautiful, not the girl you find most beautiful."
Is this in essence the difference between trading and investing? The trader has an ability to see how everyone else will react where the fundamentalist try's to predict how economies will evolve to predict future valuations. What does both the trader and long term investor have in common? They both try to predict supply and demand based on current information. So what has more risk?