Market trader jobs

Have you ever been curious in what a typical day looks like for a trader? We followed three seasoned traders in order to get an understanding of what it takes to be successful in this industry.

In order to get insight into what it takes to be the top trader, we spent a day shadowing three different traders. You may educate yourself on daily check points, successful trading techniques, and the role that analysis plays in assisting traders in making better choices by viewing the videos included on this page. Because all three of the traders we followed also have jobs as analysts at DailyFX, the videos will also be helpful if you want to integrate trading with your other day-to-day activities. This is because the traders serve as perfect role models because they have day jobs in addition to trading.

What do traders do?

Traders' primary objective is to generate a profit from the buying and selling of various financial products. They have the option of choosing cash assets like shares, currencies, or bonds, or derivatives like CFDs, futures, or options as their investment vehicle of choice. When dealing with cash instruments, the objective is to purchase an item at a lower price with the intention of later selling it for a greater price. Traders, on the other hand, speculate on the price of an asset when using derivatives, but they do not take ownership of the asset itself. As a result, it is feasible to earn a profit from both rising and falling markets when using derivatives.

Because possible profit must always be weighed against potential loss in trading, it makes no difference what instrument is being traded, who is trading it, or where the deal takes place; striking the right balance between the two is of the utmost importance. The application of proper stops and limitations, as well as the restriction of exposure to an amount of money that is excessively at risk, are all essential components of effective risk management.

How exactly does fundamental analysis become used by traders?

Traders use fundamental analysis to evaluate a wide range of internal and external elements, and then use that information to determine how much they believe an asset is worth. They could take a look at the most recent financial reports, how well a certain industry is doing, and how the economy as a whole is doing. After carrying out their research, if they come to the conclusion that the asset's current price on the market is below its true worth, then they will purchase it. If they believe that it is overpriced, they will sell it.

The next video focuses on long-term trader Christopher Vecchio, who is from the United States but mostly trades in European markets. Christopher devotes a significant portion of his time to reading the news and doing research because he believes that one should acquire as much knowledge as possible. "Whether it's new methods or new points of view, there is always something that you could possibly adopt into your trading strategy and attitude to better your process," he adds. "This is true whether it's new techniques or new points of view." Both fundamentals and technicals are used in his research; however, fundamentals serve as the basis for his analysis while technicals are used to time entry and exit opportunities in the market. Putting aside your feelings and ego is one of his most important pieces of advice when it comes to trading. As he puts it, "you don't want to be right, you simply want to earn money."

How does the practice of technical analysis play a role in trading?

Charts and other technical indicators are used by traders as part of a process called technical analysis, which is used to investigate how prices move in the market. A trader may uncover patterns that provide an insight into where the market is heading next with the use of technical analysis, which can then be used to trade in accordance with those patterns. A skilled technical trader may use a number of distinct indicators in order to validate the trading signals that they have identified.

What activities do traders engage in prior to the opening of the markets?

Traders often make adjustments to their strategy before the opening of the markets in order to ensure that they are able to maintain their discipline and avoid being influenced by their emotions during the trading day. The majority of traders get up extremely early to get a head start on their planning, which may involve the following:

Putting plans through their paces

Taking a look at current account balances

Examining the dates on an economic calendar

Reading recent news and updates on the market

Conducting a check of overnight positions and warnings

Finding unexplored career paths

The act of placing orders

Every single trader we spoke to made sure to get caught up on the latest market news by reading the paper, browsing through various news websites and apps, and listening to the morning news broadcast. This is an essential step in the trading process because it gives you the opportunity to mentally prepare yourself and devise a strategy for the next trading day.

Renee Mu is an Asian market trader who enjoys both the mathematical and psychological aspects of trading. Her story may be seen in the film that can be seen below. Renee begins each day by getting up on the latest market news. She then schedules little blocks of time throughout the day to look at charts and focus on her analysis. In order to research the markets and plan her trades, she employs a hybrid approach that combines fundamental and technical analysis. She first determines the trend she will follow with the assistance of fundamental research, and then she employs a few basic technical indicators to further construct her trading technique. Her trading strategy is by far her most potent weapon, and she describes it as "a technique to cope with human weak areas" like hubris and a failure to scrutinize everything.

A day in the life of a trader: the opening of the market

When the stock markets first open for business, early trading begins. This is often the time when there is a greater degree of both volatility and liquidity. What Traders Do During This Time However, Can Vary Greatly From One Trader to Another Some Traders Will Open New Positions While Others Will Continue Planning

Renee, for example, uses this time to catch up on what the charts are doing, whereas Christopher, who focuses on European markets, uses the early hours to do a lot of reading, separating the wheat from the chaff and deciding what might affect his trading plan. Renee uses this time to catch up on what the charts are doing, whereas Christopher uses the early hours to do a lot of reading, separating the wheat from the chaff and deciding what might affect his trading Michael has notifications set up to watch the price activity, and any early trading will rely on whether or not he is notified to take action.

After lunch, an example of a typical day for a dealer

The activities that a trader engages in after lunch are determined by the trading style that they use. Renee continues to work on her research and trading strategy. By this point, she has accumulated a number of trade ideas that she may include into her plan.

Even though Christopher could be back home by 2:00 p.m., he still has to be aware of the closure of the US markets since substantial swings in currency prices might take place during this period. Michael will act in accordance with whatever the market requires of him. He won't take any action if there isn't any significant price movement to motivate him to do so.

After the market closes, what do traders do?

When the market is closed for the day, traders have the opportunity to reflect on their transactions and summarize the behaviors of the market. It is essential to do a thorough analysis of the market volatility, the number of trades, the proportion of successful versus failed transactions, and the average profit or loss from each trade (in points or pips).

Even after the markets have closed for the day, Christopher stresses the need of being abreast of current events in the financial markets. Renee maintains that even once a deal is closed, the process is not complete. You should consider what went well and what might have been done better, and then work to make those areas stronger in your future trade.

Trading done outside of regular business hours

Even when the market is closed, traders have a responsibility to be informed of what's going on in the market they choose to focus on. When Michael arrives home, he immediately picks up where he left off with whatever he was doing. Because of the way he has things set up, he is able to stay current with the news and continue to check the charts.

Dealings done at night

The hours that stock markets are open vary greatly due to the fact that there are trading exchanges located all over the globe. This indicates that some dealers engage in market speculation throughout the overnight hours. The benefit of this is that they are able to trade in these markets in real time and respond rapidly to any news. Renee's company needs her to work at night, thus it makes perfect sense for her to engage in night trading.

Weekend trading

Weekend trading is possible on some markets, such as indices, but not on others. As a result, there are occasions when merchants engage in business over the weekend. Renee, who concentrates on Asian markets, could follow the Hong Kong HS50 on the weekends, while Michael has been known to take breaks from trading every once in a while. Both of them love taking a vacation from the market from time to time. The weekend is an excellent opportunity to look back on the deals made during the previous week. If there are any areas that need to be improved, you may practice fixing them on a sample account so that you can go on.