Blue Collar Trader

DEFINITION of 'Blue Collar Trader '

A trader who has another source of income, and does not trade as a means, but rather as a savings plan, or bonus, etc. This person typically does not trade in large volumes, leaning more towards trying to earn smaller returns. Such a trader is not significantly experienced or knowledgeable in the field, and will therefore tend to stick to less risky investments.

BREAKING DOWN 'Blue Collar Trader '

There are many websites, and other information forums to aid blue collar investors in trading. With the right information, blue collar trading can give the trader an extra income source. Blue collar investors work with brokers to gain advice on which investment decisions to make, and will pay a fee for their services, however, due to a highly competitive market, the commissions and fees for such brokers has decreased significantly.

RELATED TERMS
  1. Blue Collar

    A working-class person historically defined by hourly rates of ...
  2. White Collar

    A working class that is known for earning high average salaries ...
  3. Collar Agreement

    An arrangement in a merger and acquisition deal that protects ...
  4. Zero Cost Collar

    A type of positive-carry collar that secures a return through ...
  5. Interest Rate Collar

    An investment strategy that uses derivatives to hedge an investor's ...
  6. Fixed Dollar Value Collar

    A floor and cap on the stock component of an acquisition transaction, ...
Related Articles
  1. Retirement

    Blue Collar Vs. White Collar: Different Social Classes?

    Learn about the implications of the words "blue collar" and "white collar" and the connotation each carries for social class and the type of labor performed.
  2. Trading

    Minimize Risk With The Long Collar

    Think your favorite stock is on the way down? This simple option-trading strategy can help you manage your risks without selling the stock.
  3. Trading

    Capitalize On Collars To Enhance Your Trades

    Trade collaring measures current technicals and makes swift adjustments to account for environmental changes.
  4. Trading

    Apple As An Example Of How a Protective Collar Works

    We define a protective collar, using Apple (AAPL) as an example. A protective collar is a combination of a covered call plus long put position.
  5. Trading

    Costless Collars: Because Asset Allocation Is Not Enough

    Collars are extremely flexible, and can be much more beneficial to your portfolio than asset allocation.
  6. Trading

    Market Volatility Strategy: Collars

    Find out which protective or bullish collar will result in your optimal risk/return level.
  7. Trading

    How Does a Collar Work?

    Collar refers to a protective options strategy that investors use after a stock has experienced substantial gains.
  8. Trading

    Using LEAPS With Collars

    This options strategy will help you lock in profit while keeping your upside potential.
  9. Managing Wealth

    What is the American Dream in 2016?

    The American Dream is still alive and well, but it looks very different than it used to.
  10. Investing

    Diversifying A Concentrated Stock Position

    Having stocks in one area exposes an investor to risk. We tell you four ways to minimize it.
RELATED FAQS
  1. What are the best options strategies for investing in the real estate sector?

    Discover two popular options strategies that traders often use to enhance or protect profits when investing in the real estate ... Read Answer >>
  2. How is a short call used in a collar option strategy?

    Learn how a short call is used in a collar option strategy, and see how this strategy has a limited risk and a limited return ... Read Answer >>
  3. How do I start investing in blue chip stocks?

    I've been having an interest to start investing in blue chip stocks, and possibly in a drip account. I need help to know ... Read Answer >>
  4. I want to start buying stocks. Where do I start?

  5. What kinds of fees are involved in futures trading?

    Learn what the various costs are that are charged by brokerage firms and trading exchanges to individual futures trading ... Read Answer >>
  6. How can I prevent commissions and fees from eating up my trading profits?

    First off, understand that there is no universal system regarding trading commissions charged by brokerage firms. Some charge ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center