| An individual or firm which specializes in the buying | | | | with the financial strength of a business, and the |
| and selling of bonds and stocks, on behalf of | | | | prospects of it yielding huge profits in the future, |
| investors in the financial market, is a stock trader and | | | | instead of short-term volatility in the stock price. |
| is also known as a stock investor. The goal of this | | | | To become a stock trader, a degree centered on |
| individual or firm is to obtain profit from the short | | | | numeracy skills such as business studies, economics, |
| term fluctuation in the price of stocks, by trading | | | | accounts, science and engineering and maths is more |
| within a short period of time. There are also stock | | | | than likely required. Employers are however looking |
| traders who operate by buying a stock with the | | | | for more than just academics. They are interested |
| objective to hold the stock for a many months or | | | | employing applicants with great interpersonal skills as |
| years. Stock traders may operate as full time or part | | | | well as enthusiasm and energy for the financial |
| time stock traders depending on their own liking and | | | | market. Employment is likely to be obtained from |
| goals. | | | | stockbrokers, investment banks, fund managers and |
| There are three main types of stock traders, namely | | | | commodity brokerage firms. |
| the Day trader, Swing trader and the Position Trader. | | | | Due to the recession affecting our economy, fewer |
| Day traders are concerned about producing profit in | | | | positions are available with greater competitions for |
| a short period of time and hence are involved in | | | | these positions. However as a new graduate, you |
| short-term trades. As a result, their trades will have | | | | can obtain some advantage by gaining experience |
| duration of several minutes to hours, with no | | | | (for which you may not be paid) from an investment |
| expectation of keeping the stock overnight. In the | | | | bank. Graduates in these fields are normally recruited |
| eyes of a day trader, the stock market is a means | | | | by major investment banks for internships. To |
| of making an income and not for investment. Swing | | | | become a trader, it is possible that you may begin |
| traders on the other hand are interested in making | | | | working in an administrative capacity and then move |
| more profit by holding a large portion of a stock over | | | | on to becoming a trader by making contacts and |
| a longer period of time. Therefore a stock trader will | | | | gaining experience. However, before you are able to |
| hold a stock for as long as weeks or months. Swing | | | | conduct any business, you will be required to meet |
| trader based their decisions on fundamental and | | | | the qualifications set out on the Financial Services |
| technical analysis. Position traders are the most | | | | Skills Council's website. After doing so, your employer |
| popular; they operate by buying and holding a stock | | | | can apply to the Financial Services Authority for |
| for long periods such as months and years. There | | | | approval. If you do well as a trader you can be |
| decision to buy or sell a stock is heavily dependent | | | | promoted to the analyst level. |
| on fundamental analysis. There are more concerned | | | | |