Just like any other sales person, a trader buys and sales ideas or products to customers who can be individual or institutions, in order to generate revenue. Some will buy and sell on behalf of a firm or other individuals. The baseline is to make a profit. In this article, we will take you through a typical trading day in the life of a trader.
Before anything, a trader has to prepare his or her office just like any other worker in any sector. This is when the traders ensure that all his tools of work and Trading Platform are functioning properly.
If the tools are okay, most traders at this point would ideally start flicking through the market identifying potential trading openings. For traders who are specialized in one or two investment products, they do open charts and analyse them through specified technical indicators to keenly examine the trends and behaviours that may be helpful.
Other traders use sophisticated software that uses a given set of rules to scan for an opportunity in the market.
When trade is open, many traders sit on the sideline and wait for the turbulence of the investment products to settle. The first one or two hours upon opening of the trading period is extremely unstable, and hard to predict.
When everything settles down, the game begins. Traders use their experience, instinct and prior plans to check for any widow of trading opportunity. The prey game is intense and here, timing and precision decided if you gain, lose or exit the trade with nothing. Just like a hunter, traders’ pounces on an opportunity quickly as a one-second delay can mean a totally different result.
In order to submit orders to the system, traders use the order entry interface. Some traders will give concurrent orders to increase chances of profit and if the changes are not favouring them, exit the trade immediately to prevent further loses.