What is a trader's job?

Discussion in 'Trading' started by Ghost of Cutten, Nov 28, 2010.

  1. First answer would obviously be "maximise risk-adjusted return". But if you break it down into the key components, what does his job actually consist of?

    For example, a boxer's job is to beat his opponent. Breaking it down into the key components, his job is to hit the opponent repeatedly, whilst avoiding being hit himself, aiming to KO his opponent or, if not possible, to defeat him on points by being more effective during the bout.

    A mechanic's job is to repair and service vehicles. Breaking it down into components, his job consists of surveying the vehicle, finding out what is wrong, selecting the appropriate repair technique and parts needed, then carrying out the repair.

    So, what's a trader's job, if you break it down into the component parts?
  2. lescor


    The same as a retailer. He tries to identify something other people will want to buy, then acquires it and tries to sell it at a mark up. He has to correctly guess people's moods and tastes. He has to monitor his competition and correctly respond to their actions. Sometimes he has to put things on sale to blow out unpopular inventory and free up capital for something that will move better.
  3. His job is DISCIPLINE.

    Once he has found his 'edge', stick to it consistently and follow in day in day out.

    Market can represent itself in an infinite combination, so DISCIPLINE is the traders job.
  4. heypa


    Lescor I like your description.

    Consider that you are an employee.I know traders are not employees.
    You have been hired to make him money. Why else would he hire you?
    He's not a good boss (but he is the boss).
    He doesn't give you specific directions except to direct you to trade stocks.
    You get a 10,000 line of credit,a computer,high speed internet connection.
    Lose the 10 k and you are fired for failure to perform.
    You must increase your gain each year after the first year.
    you get a bonus of ten% of any profit over your salary costs.
    No excuses accepted. If you don't meet the contract requirements you are terminated.

    Would you take the job? Livable salary offered.
    If not why not?
  5. MAKE MONEY!!!
  6. Cheese


    Job is the doing or the doing of.

    But the aim is what you need first: usually at ET this is set as being 'trading for a living'. However, the aim should be to make yourself rich (and as quickly as practicable). How much harder is that? Its not. It only requires compounding; that is increasing your bet or stake size in line with the net gains you make - or in other words increasing size corresponding to your expanding net accumulation (without excess leverage at any time)

    Now that the aim is clear, what is the job? The job is identifying where the money is, choosing your market and applying a reliable methodology. In order then, the money is in the gyrations (ie the price swings, open to close), your choice should be a volatile market (eg CL) and your methodology is a dependable day trading modus operandi exploiting the successive swings of the market, open to close.
  7. It all depends on the type of traders below:


    In finance, a trader is someone who buys and sells financial instruments such as stocks, bonds, commodities and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. According to the Wall Street Journal in 2004, a managing director convertible-bond trader was earning between $700,000 and $900,000 on average.[1]

    Traders are either professionals working in a financial institution or a corporation, or individual investors, or day traders. They buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges and the commodities exchanges. Several categories and designations for diverse kinds of traders are found in finance, these may include:

    * stock trader
    * day trader
    * pattern day trader
    * floor trader
    * High-frequency trader
    * rogue trader

  8. A trader's job is to attempt to execute a positive expectancy strategy consistently and without emotion.
  9. NoDoji


  10. This trader's job for the night was to test what is the limitation of the market he trade:


    Perkins had placed more than $520 million worth of trades, at one point pushing the price of oil to $73.05, an eight-month high. The trades by Mr. Perkins were the main reason the price gained about $1.65 a barrel in just over two hours in the middle of the night, according to the report.

    #10     Nov 28, 2010