What is a trader?
Many people think that traders are traders, or bookmakers, main funds, or hot money. In fact, it cannot be understood this way. The job of a trader is to complete trading tasks and increase overall operating income through short-term transactions.
How to understand the job of a trader. If the price of a stock rises from 5 yuan to 10 yuan, and the profit is 5 yuan, then it actually has nothing to do with the trader, but with the investment manager, because the investment manager chose the right stock.
If the stock price rises from 5 yuan to 10 yuan, because the stock price fluctuates up and down, the final profit is 8 yuan, then the extra 3 yuan is the credit of the trader, and it is an excess profit. Therefore, the trader himself is a trader who amplifies profits for funds through stock trading.
The vast majority of traders do not actively select stocks, except for some private traders. Traders themselves are traders, not stock researchers. In most trading teams, researchers will select stocks, investment managers will confirm, and traders are responsible for execution.
Only when the daily trading volume of a stock that needs to be traded is too low, making it difficult to operate, will the trader discuss with researchers and investment managers whether this stock must be selected for trading.
In most other cases, traders are only responsible for determining stock trading strategies and are not responsible for stock selection. Investment managers are mainly responsible for stock selection and industry selection, and researchers are responsible for providing data reports on relevant industries and individual stocks.
Many people may think that there is no need to study industry and corporate data for short-term operations. In fact, they are completely wrong. Even for short-term operations, the entire trading team will know the situation of the company, especially the hot topics. Understand clearly. The trader is responsible for the final execution. As for the execution process, increasing or decreasing positions, adjusting positions, controlling orders, etc., that is all the trader's business.
The vast majority of traders only trade one stock. Those who do swing or long-term trading may trade two to three stocks, not more. Traders can make decisions based on their own subjective judgment within the market, but if the position adjustment ratio exceeds 50%, or the position is full, liquidated, etc., they must report to the investment manager for instructions and confirm before proceeding to avoid major investments. Bad decision-making.
If we talk about a trading team, the investment manager is the brains, the researchers are the heart, and the traders are the hands and feet that allow all stock transactions to be completed smoothly. This is a trader in the true sense, not the one-stop-service private valet trader that everyone imagines.
There are very few private traders who are really good at trading on behalf of clients. Those with excellent results end up working in private equity funds, which is equivalent to joining a team to fight instead of trading on behalf of clients. A day's work of a trader
First of all, as everyone imagines, traders generally have to face at least three computer screens, and some even have to face 5-6 screens. The most important thing on these screens is the trend of individual stocks, which generally includes time sharing, 5 minutes, 30 minutes and daily K. Secondly, it is the transaction details of individual stocks, which is used to capture the changes in large funds and the overall changes in the sector.
In addition, there will be a home screen with index information such as the Shanghai Composite Index, the Shenzhen Composite Component Index and the Central Innovation Index. Finally, there is usually a comprehensive list of gainers, losers, and amplitudes as a reference for the day's market strength. Therefore, there are actually many market hot spots and market dynamics that traders should pay attention to.
Generally speaking, unless there is an emergency, the daily trading strategy is formulated the night before and will not be discussed again before the market. Unless there are relatively large fluctuations in the external market, the researcher will launch a brief market situation analysis explanation at around 8 o'clock, and then everything will be business as usual. Traders usually have a nice breakfast and go to work in front of the computer around nine o'clock.
Early trading can be said to be the busiest time for traders, because 9:30 to 10:30 is the most frequent trading time, and most operations are completed in the early trading. However, after a stock position has been established, the trader will judge for himself whether intra-day operations are necessary. It is not like some people imagine that traders have to trade every day. The actual trading frequency may be lower than that of ordinary retail investors.
Most of the time, traders will mainly look at the market, and decide whether to do some intra-market trading that day based on the trend of the market. If everything is in line with the expectations of the previous day, then the main focus of the market-watching time is trading. Fund changes in individual stocks. Most traders are assisted by complete statistical software on capital flows. When there are no large orders, retail investors are allowed to trade on their own.
Of course, in the process of building a position, there will be some buying low and selling high. Traders with a relatively large amount of capital will generally delineate the potential trading range of individual stocks for the day, reduce holdings when they reach the upper part of the range, and increase holdings below the range, and price alerts will also be set. From 10:30 to 2:30 in the afternoon, unless there is a major change, such as a large dive or a large rise, traders basically rest during this period.
Traders’ lunches are usually extremely simple. At noon, they usually chat with the investment manager about the overall market situation. Then, most traders continue to rest, and some even choose to take a nap.
Giving up midday trading is the principle and iron rule of many traders. As for the reasons, you can figure it out for yourself. Near the end of the trading day, traders and investment managers will decide whether to appropriately increase their holdings at the end of the day based on the situation of the day, because buying at the end of the day is very flexible for the next day's trading.