The main business of a trader is participating in buying and selling of investment products. This product includes futures, securities and stocks. Traders do open and close out positions aiming at making a profit. These profits are small, but when done frequently they sum up into a big gain at the end of the day.
Just like any investment professional, there are different categories of traders. There are independent traders working from the comfort of their offices, some work as employees in offices and others are the extreme expert who in institutions have place confidence in them do move millions of dollars.
To categorize traders further, you may look and their style of trading. The time frame in which they enter and exit trades, and how they find openings in the market is also a common way of defining a trader.
Traders whose work is to analyze the market, decide based on the findings and pace a manual order is referred to as discretionary trader. However, system trader utilizes some form of automation using the software in a computer, while scanning the market for an opportunity and placing the orders.
Before the market buzz with the activities at exactly 09:30, traders are usually preparing for the day. The preparation entails skimming through newspapers, magazines and financial websites. It is normal to find some even listen to financial updates from news radio.
After gathering all the information, they can find about finance and the economy, most of them move to their terminals, and check or make their own analysis for the day. Many aspects of technology are at work in trading. They must ensure that the computer is functioning fine, the internet speed is fast enough and the trading platform responsive as it should. This is the most crucial stage of the day since any hiccup with the components can result in a money loss or a loss of an earning opportunity.