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.

BREAKING DOWN '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.

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