Stock Trader

AAA

DEFINITION of 'Stock Trader'

An investor in the financial markets. Stock or equity traders can either partake in the practice casually or as a full time profession. Those working at the institutional level are often employed by hedge funds, mutual funds, portfolio managers or pension funds. Stock traders are not limited to trade only stocks, but can invest with other financial instruments as well.

INVESTOPEDIA EXPLAINS 'Stock Trader'

In order to be a successful stock trader, an investor must properly execute a profitable investment strategy. For example, while some may trade with a short-term perspective using momentum indicators, others find a niche in long-term buy-and-hold strategies. Some of the most famous stock traders include Warren Buffet, Benjamin Graham, Isaac Newton and George Soros.

RELATED TERMS
  1. Shareholder

    Any person, company or other institution that owns at least one ...
  2. Trade Trigger

    Any type of event that triggers a securities trade. A trade trigger ...
  3. Common Stock Equivalent

    Securities such as stock options, warrants, preferred bonds, ...
  4. Stock

    A type of security that signifies ownership in a corporation ...
  5. Stock Option

    A privilege, sold by one party to another, that gives the buyer ...
  6. Blue Chip

    A nationally recognized, well-established and financially sound ...
RELATED FAQS
  1. What metrics should I use to evaluate the risk return tradeoff for a mutual fund?

    One of the principles of investing is the risk-return tradeoff, defined as the correlation between the level of risk and ... Read Full Answer >>
  2. What is the best managed fund for trading mid-cap stocks?

    Mid-cap stocks have a moderate capitalization and are officially valued between $1 billion and $8 billion. Actively managed ... Read Full Answer >>
  3. How do companies report the value of their capital stock?

    A company's capital stock shows up in the shareholders' equity portion of the balance sheet. There are two general methods ... Read Full Answer >>
  4. How do day traders capture profits from the difference between bid and ask prices?

    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
  5. What is a good annual return for a mutual fund?

    A "good" annual return on a mutual fund can only be gauged in a relative sense, influenced primarily by the investment goals ... Read Full Answer >>
  6. What's the difference between a capital stock and a treasury stock?

    Capital stock and treasury stock describe two different types of a company's shares. Capital stock is the total amount of ... Read Full Answer >>
Related Articles
  1. Active Trading

    What Is Market Efficiency?

    The efficient market hypothesis (EMH) suggests that stock prices fully reflect all available information in the market. Is this possible?
  2. Active Trading Fundamentals

    Support And Resistance Basics

    Understanding the concept of Support and Resistance in trading can drastically improve your short-term investing strategy.
  3. Mutual Funds & ETFs

    When To Sell A Mutual Fund

    Unhappy with your mutual fund's returns and thinking of investing elsewhere? Read this article first.
  4. Personal Finance

    4 Tips For Joining An Investment Club

    These circles of like-minded people are a wonderful way to explore investing without laying out large sums.
  5. Retirement

    Why It Pays To Be A Lazy Investor

    Be a couch potato! This passive, but diversified, investing strategy could be for you.
  6. Investing

    Should You Average Down When Trading Stocks?

    Averaging down on a stock can allow you to avoid having to admit you are wrong. On top of this and given enough time, the strategy can result in a profit.
  7. Trading Strategies

    Is Liquidity Improved By High Frequency Trading (HFT)?

    Is the market liquidity provided by high frequency trading a reality or an illusion?
  8. Fundamental Analysis

    Young Investors: Should You Care About Dividends?

    If you're a young investor, you may want to consider a non-traditional approach to investing.
  9. Personal Finance

    How To Calculate Beta Of A Private Company

    We explain two methods for calculating the beta of a private company.
  10. Investing

    Best ETFs to Trade the Tokyo Stock Exchange

    Japanese stocks are soaring thanks to incredibly aggressive monetary policy. Should you go for the ride?

You May Also Like

Hot Definitions
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to ...
  2. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  3. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  4. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  5. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
Trading Center