Journal of Stock & Forex Trading
Open Access

Understanding How Stock Traders are Portrayed and How their Actions Directly Affect Prices

Ali Reza^{* *}Correspondence: Ali Reza, Department of Mathematics, East China University of Science and Technology, Shanghai, China, Email:

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Description

A stock trader, also known as an equity trader, share trader, or stock investor, is a person or business that deals in equity securities and tries to make money by buying and selling those assets. Investors, agents, hedges, arbitrageurs, speculators, and stockbrokers are all examples of stock traders. A stock exchange may be used for such equity trading in large publicly traded corporations. Equity crowd funding platforms and Over-The- Counter (OTC) marketplaces may be used in some cases to buy and sell stock shares in smaller public firms. Proprietary trading is when a stock trader trades on their own behalf. Another option is to use an agent who is permitted to purchase and sell stocks on the owner's behalf. Typically, a stockbroker is used when trading through an agency. Agents receive a commission for handling the transaction. Market makers on major stock exchanges purchase and sell shares of a certain firm on their own behalf and also on behalf of other clients, thereby reducing price variance (volatility). Stock traders may offer shareholder advice and assist with portfolio management. Bonds, stocks, futures, and hedge fund shares are all traded by traders. A stock trader also keeps a close eye on how the financial markets operate. This is achieved by research in economics and microeconomics; as a result, more experienced stock traders will study macroeconomics and technical analysis of a particular industry to monitor the performance of assets or corporations. A stock trader's other responsibilities include comparing financial analyses to existing and proposed occupational regulations. Before becoming established in their chosen field, professional stock traders who work for financial companies must do an internship that can last up to four months. For instance, in the US, an internship is followed by the Series 63 or 65 test, which is given by the Financial Industry Regulatory Authority. Those who pass the exam show that they are knowledgeable about SECcompliant trading methods and regulations. After obtaining their license, experienced stock traders typically pursue a fouryear degree in finance, accounting, or economics. For advanced stock market research, it was predicted that growth for stock and commodities traders will be larger than 21% between 2006 and 2016. Supervisory jobs as a trader may typically demand an MBA. Stock trader would profit during that time from trends brought on by baby boomers' pensions and their reduced reliance on Social Security. Moreover, there would be more erratic trading of US Treasury bonds. New stock traders struggle since there aren't many entry-level jobs available. Notwithstanding the fierce competition for admittance into this sphere of work, the rising ownership of stocks and mutual funds propels traders' careers forward significantly. Also, banks were providing more chances for those with average incomes to participate in and speculate on stocks. The median annual salary for stock dealers, according to the BLS, was $68,500. Stock and mutual fund traders with experience might make more than $145,600 per year. Volatility in the stock market can lead to mental health problems like anxiety and depression. This is consistent with studies on how the stock market might affect a person's mental health over time. Seasoned stock traders and investors typically develop a level of psychological resilience that can deal with these negative factors over time; otherwise, they run the risk of continuously experiencing some type of mental health issue throughout the course of their careers or financial activities that are reliant on the stock market.

Conclusion

To access the stock market, stock traders and investors typically need a stock broker, such as a bank or brokerage firm. Since the advent of Internet banking, an Internet connection is often utilized to manage positions. Technical and fundamental analysis is tools used by stock speculators and investors to aid in decision-making. These tools include the Internet, specialized software, and a personal computer. They might make use of a variety of information sources, some of which are purely technical. They try to forecast the buy and sell points of the current day's trading session using the pivot points determined from the previous day's trade. These points give traders a hint as to where prices will go for the day, telling them where to begin and leave their trades. Stock screens are an additional tool for stock pickers. Stock screens enable users to enter particular parameters based on fundamental and/or technical criteria that they think appropriate. The main advantage of stock screens is their capacity to return a select few equities for further examination from among thousands that meet the specified criteria. Many seasoned stock speculators donot employ these technical indicators because there is debate over their analysis.