Trader: what is it really?

Have you heard of a “trader” but are not exactly sure what this person does? That's normal, the term can be confusing.

The basic definition

A trader is simply someone who buys and sells financial products to make a profit. Currencies, stocks, bonds, cryptos… it doesn't matter. The concept is always the same: buy low, sell high. Hence the nickname “speculator.”

To succeed, a trader must:

• Read the economic and geopolitical news continuously
• Anticipate price movements
• Manage risks intelligently (it's crucial)
• Stay reactive 24/7 (hence the usefulness of mobile trading)

The different profiles

The independent trader: works for his own account. He invests his personal money and manages his positions alone. Advantage? Freedom. Disadvantage? He must be very disciplined, especially in money management, to avoid losing all his capital at once.

Many independent traders specialize in a single market: crypto, commodities, indices… Some use derivatives like CFDs to amplify their gains (with leverage).

The flow trader: works for clients (companies or individuals). His role? To advise them and manage their portfolios. He does not trade just for himself; he must also retain his clientele.

The institutional trader: an employee of a bank or a fund, he trades directly for the institution.

The key point

Whatever your profile, true skill is reading the market before others and accepting that you will often be wrong. Hence the importance of risk management.