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How successful stock traders spend his time?

Stock traders join the market by purchasing and selling stocks and closing out positions with the idea to make small gains. Like there are several kinds of investors, you have several types of traders, ranging from a small trader, work from the home trader to an institutional player who moves hundreds and thousands of dollars of worth of shares daily.

Traders and their trading styles

While you have too much diversity among traders, there isn’t such a thing as a typical day in a trader’s life. It is tough to determine the scenario of the day and the average return for a trader during the day.

Keeping this fact in mind, let’s find out how a successful stock trader spends his time.

Pre-Market

Before the stock market comes to life in the morning, most traders usually enjoy their breakfast and coffee in hand, reading about an event the previous day that can affect their trading session. It includes reading fundamental news or financial news from newspapers and websites or listening to updates from CNBC or Bloomberg.

Traders also assess the economic calendars to know which market-moving monetary reports will take place that day, such as the petroleum status report. Most traders join in the round-the-clock stock market, and they can expect an increased volume during the market’s opening hours.

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After finding out what analysts have to say for the day, traders move to their workstations, switch on their display, computers and sign in to their trading platforms. Several technologies work together here, from the computer, mouse, keyboard, internet, brokerage platform, trading platform and exchanges. Hence, traders spend time to ensure that everything on their end works well before starting their trading session.

If things are well, some traders may choose two-three stocks, open their charts, and use selected technical indicators to find out the status of the market. Others may use software to meet their specifications. Once the computer collects the stocks that meet their criteria, the trader will put them on the watch list.


Early trading

The beginning hour is highly volatile; hence, single traders watch and wait for the market to settle to avoid being stopped out.

Traders look out for trading opportunities depending on their Trading Strategies and recent market activity. Accuracy and timing are important here. The smaller your holding period is the, shorter your targeted profit will be.

If an opportunity arises, the trader should take an immediate step and pounce on the trade. A difference of seconds can make or break your trade.

Most traders hope that their profit targets will be reached before lunch. But, with big money out till lunch, the market slows down. Some traders wait to close one position before entering another, while others simultaneously take two or more trades.

Second wind

Post lunch, the market gains pace and movement, and volume are seen. Traders benefit from the second wind before the market closes for the day. Any position opened during the day has to be ended before the day ends.

As 3 p.m. approaches, the traders close all the positions and end the unfulfilled ones. Either they will close the day with some profit, loss, or breakeven.

Bottom line

A trader spends most of his time researching, exploring the markets, discovering technical indicators, scanning the market for opportunities, and brushing their order entry skills. After the market ends, traders review their trades, finding what went well and what could have been better.


18-12-2021
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