A stock trader is an investor in the financial markets. Stock traders can be individuals or professionals trading on behalf of a financial company. Stock traders participate in the financial markets in various ways. Institutional level traders typically have the greatest market influence and are often employed by management investment companies, portfolio managers, pension funds or hedge funds. Stock trading can be profitable for individuals and institutions. The two groups participate in the financial markets in different ways.

First, individual stock trading, Individuals can be very successful at stock trading.

There are a number of stock trading strategies and techniques that are targeted for individuals. Trading platforms include Nadex, E-Trade, Schwab and Merrill Edge. Trading penny stocks are one market strategy that can be highly profitable for individuals. Stocks with prices of up to $5 can be considered penny stocks. Traders can buy large quantities of penny stocks at low prices, generating significant market gains. Penny stocks usually trade on over-the-counter exchanges with transactions. that can be easily facilitated through discount brokerage platforms.

Second, institutional stock trading. These traders have much less latitude for market trading and are responsible for transactions on behalf of management investment companies, and other registered fund investments. These funds have numerous objectives, ranging from standard indexing to long/short and arbitrage-based strategies. Buy-side traders have expertise in trading the securities held within the fund for which they seek market transactions.

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