Who are traders? Definition, essence of activity

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In any sphere of human activity there are successful individuals. Their success and achievements inspire beginners, professionals are guided by them. Who are traders? These are successful people involved in trading on the stock exchange. They have a free schedule, high salary, creative and interesting work. Their profession is relevant in other countries of the world. If everything is so good, then why don't we all work on the stock exchange? What is the work of a trader, we will analyze further.

Businessman or player?

Traders are conditionally divided into two main categories:

1. Professionals working in banks, financial institutions and insurance companies. Such employees have a specialized education and a license for the relevant activity, work exclusively in the interests of their company.
2. Independents working for their own money and in their own interests. They get access to trading systems through brokers and dealers. Such work does not require licensing and specialized education.

Who are traders and what is theirgoal? Whatever the exchange floor, the main goal of smart speculators is to make money on the difference from buying and selling assets. Traders can buy an asset cheaper and sell it more expensive, or sell an asset borrowed from a broker first, and then buy it at a lower price and give it back, while taking the profit for themselves. The two main and main exchange strategies are “bulls” and “bears”. There is an opinion that stock trading is a game. There is some truth in this. Many beginner traders rely on luck in their work. However, if you ask a successful trader, he will say that trading for him is a business where you need to make efforts and use your mind to achieve your goals.

Workplace

A trader can work on the floor of the stock exchange, representing the interests of large funds, banks or the interests of a large number of clients, or at the monitor when trading is carried out through specialized trading terminals via the Internet.

Basics of work and necessary personal qualities

Who are traders and what do they do? As mentioned above, stock speculators make money on the difference in buying and selling prices. It's not as easy as it might seem. A professional trader does a combination of sequential actions every working day:

• analyzes the market and decides to enter;
• opens a buy or sell position;
• closely following the market;
• Checks whether the real movement of the exchange rate andpredictable;
• makes a decision to close the position;
• analyzing results.

Obviously, all these operations require some knowledge from the beginner. Knowing who traders are, what needs to be done to become successful? To become the best and start making decent money on the exchange, you need training, time and experience in making transactions. In addition, all stock speculators have a number of personal qualities: the ability to respond quickly, make decisions, the ability not to succumb to emotions, determination and perseverance. Good luck!