I’ve noticed that many people confuse what a trader really is. So let me clarify: a trader by definition is simply someone who trades financial products by anticipating price movements. The word comes from the English “to trade” (to exchange), but honestly, we use it as is in French because it’s easier.

Basically, a trader is an investor who tries to figure out when prices will go up or down. They enter a position when prices seem interesting to them, then they sell when they think they’ve made enough profit. That’s why we often say that a trader is a speculator.

But here’s the thing: there isn’t just one definition of a trader. It really depends on what they do specifically. Some work full-time for banks or financial institutions, while others are completely independent and manage their own accounts.

The independent trader is a different kind of person. They don’t have a boss, so they have to be very disciplined. No question of losing all their capital—there are strict risk management rules to follow (Money Management). Every decision must be calculated based on the best possible performance-to-risk ratio.

These independent traders usually specialize in a market or a product they know well: stock indices, commodities, cryptocurrencies (crypto traders), CFDs… The appeal of derivative products like CFDs is that leverage allows them to amplify their purchasing power without needing a lot of capital.

There are also flow traders, who work for their clients. Their job is to help companies or individuals manage their investments. They need to build a loyal clientele through their good advice, unlike traders who trade for their own account.

To be good at this job, you really need to know the markets you’re working on. The key is being able to anticipate—and even get ahead of—fluctuations. That means doing constant information monitoring—understanding geopolitical contexts, the global economy, and everything that can impact prices. Staying connected in real time has become essential, which is why many traders do part of their trading on mobile.