The global stock market is worth more than 80 trillion euros. If you’re ready to quit your nine-to-five job or change careers, you can make a living trading stocks. People who choose this career path are called stock traders. Depending on your goals, you can work for yourself or on behalf of an investor or a company like Avatrade.
Acquired as a stock market trader
Being a dealer may seem exciting, but it comes with its own set of challenges. If you don’t have the skills and knowledge to trade stocks, you can lose everything you have. It is a high-risk activity that requires in-depth knowledge of the stock market, supply and demand, price structure and other key aspects.
As an independent stock trader, you will buy shares in one or more listed companies. The end goal is to make money from short-term price fluctuations. You can buy and sell stocks through the New York Stock Exchange and other major exchanges or over-the-counter markets. In addition to shares, you can trade in bonds, pension funds, mutual funds and other financial instruments.
Stock traders and brokers
Despite their similarities, stock traders and brokers operate differently. Securities traders buy or sell stocks on behalf of large investment firms, banks and other companies and work in various markets, such as Forex (currency market) or stocks. Some are self-employed, full-time, from home.
Stockbrokers work for independent companies called brokers, as well as investment banks. They are more or less the same as sellers. These professionals do not buy shares for themselves, but simply organize trading in shares; their role is to help clients manage their investments.
As an independent stockbroker, you will work independently. If you have a proven track record, clients will inquire about your services. Most brokers also help their clients with financial planning and portfolio management, negotiate the best deals on their behalf, and hold seminars on investment-related topics to attract potential clients. Traders can use brokers to help them make the right decisions when trading stocks.
Tasks and responsibilities
A trader’s job is not limited to buying and selling stocks. People who work in this industry spend their time researching the market, closely observing their trades, performing trading and quantitative analysis, and developing state-of-the-art trading systems. They are also responsible for identifying and resolving issues with trading systems, handling trade corrections and maintaining relationships with major shareholders and brokers in the industry.
Most traders these days conduct their trades electronically. They use a number of online platforms to buy and sell bonds, stocks, currencies, etc. A stock trader employed by a bank, for example, can trade on his own behalf or on behalf of his clients. They monitor market trends and performance, analyze data and provide daily trading information to key parties. There are many French-speaking trading applications that allow you to practice.
Traders typically work for the finance departments of large organizations, investment banks or financial houses. Some shop full-time from home; in the digital age, anyone can start trading independently with minimal investment. A model daytrader, for example, is someone who trades at least four times in five working days and maintains a minimum capital of 25,000 euros on any given day – among other requirements. If you do not have this money, you can start trading Forex, for an amount as low as 100 euros.