Stock Market - A Day in the Life of a Stock Trader - Blog | Horizon Institute |
- A Day in the Life of a Stock Trader - Blog | Horizon Institute
- Any swing traders part of a free chat room? Im trying to find a room to hangout in and share trading ideas. Might even be down to set one up if I could get 20ish people to join
- What do you guys think of Ally Bank (ally) long term?
- America’s Teens Are Choosing YouTube Over Facebook
- How many algos?
- Question about PE ratio...Please help
- JAGX Untradable
- Obvious fake news is obviousv
- Question about Stock Market
- Cash or stocks right now?
- Bid/Ask Prices More Important than Share Price?
- Edward Snowden: the whistleblower behind the NSA surveillance revelations
- A Strategy That Makes Sense To Me
- Novice question: For which specific months do quarterly reports account for?
- Algo Trading News Headlines 5/30/2018
- Buy the dip on Micron?
- Opinions on Comcast
- Paper trading google sheet
- Day Trading & Swing Trading �� The Mojo Day Trade Show 5/31/2018
- stock prices and volume
| A Day in the Life of a Stock Trader - Blog | Horizon Institute Posted: 31 May 2018 07:00 AM PDT Section 1 – What does a stock trader actually do The life of a trader is often glamorised by films such as The Wolf of Wallstreet and Margin Call – a view that is shared by many who have no direct experience with the wider investment industry. It is also true that different types of traders have very different workloads. Trading emerging markets is not the same as trading FTSE stocks or the forex markets. Let's start by defining what traders, broadly speaking actually are: "Professionals in finance who buy and/or sell assets on the financial markets." A day in the life of a trader: Behind the scenes These are people who usually have a background in finance, either through traditional education (think degrees in finance, accounting, economics, investment management etc) or through practical experience at companies working within financial services. This is to say that the day-to-day activities of a trader is to either buy assets (such as stocks, futures, commodities) or to sell assets (such as stocks, forex, bonds). Two distinct roles in trading can be summed up in the Buy side, and the Sell side in terms of execution. A broader categorisation would include participants within the financial markets who trade securities. This encompasses independent traders working from home to large multinational financial institutions which see billions of dollars a day flow from and to their order books. The Buy Side The Buy side is concerned with purchasing assets, and this generally involves taking orders from management or clients and then sending those orders to the broker to be executed. This role is being gradually replaced by technology, specifically automation and AI, and its hard to see a future for buy side traders 20 years from now. There is also a distinctly bad reputation associated with buy side traders, these are often just messengers, and have been known to treat brokers with incredible hostility and bitterness over recent years. The Sell Side Alternatively, the Sell side is just the opposite – these traders are only concerned with selling positions either the firm or the firms clients holds. Again technology is eliminating this role over time, and today both buy and sell side traders simply take message, and pass it along either electronically through an online platform or via telephone for the perhaps more traditional establishments. Private Hedge fund managers Many successful traders have gone on to start hedge funds with private companies and from private investors. This is a highly privileged position to be in, as hedge fund managers are in control of both the broad strategy for the investments and receives the greatest compensation should the strategy be profitable. Private Portfolio Managers Portfolio managers working at a private company (such as a large hedge fund) is again a much sought after position. Portfolio managers generally create a positive or negative selection portfolio, which allows them to implement their own strategy to make the best returns with the lease risk – although these parameters are often set outside the control of the individual portfolio manager. The same also exists within commercial banking, but it is usually more focused on creating a very balanced portfolio that exists to hedge risk as opposed to making real returns. Analysts Analysts do the number crunching and quantitative prep work for the portfolio or hedge fund managers. This role involves applied finance and taking a close look at various assets fundamentals. This includes the balance sheet, income statement and cashflow statement for analysts looking at stocks. This is usually a relatively junior role, and those who are successful here tend to become traders, portfolio managers and eventually hedge fund managers over the course of a successful career. Investment Banking There are still plenty of traders left at investment banks, despite the decline over the last few decades. As much as 90% of the time is spent dealing with clients such as Hedge and Pension Funds. Investment Bank Traders As much as 90% of the time is spent dealing with clients such as Hedge and Pension Funds. The trader is then Making Markets in Assets the clients want to buy/sell, such as stocks, currencies, commodities and bonds. The other 10% of time is Proprietary trading, utilising the banks large balance sheet to create a positive selection portfolio. Market Makers (Agency) Market making is the primary task of an investment trader (~80% of market making business) Split into two sections: Agency Business – Client holds risk Risk business – Investment Bank holds risk Investment Bank charges commission on these activities at a typical rate of 5 basis points or 0.05% Example – Buy £10,000,000 of BP stock at £100 per share = 100,000 BP shares. Commission for bank - £10,000,000 X 0.005 = £5,000 Risk free for bank – algorithm executes trades based on client orders In terms of basis points, 100 = 1% Proprietary Trading This type of trading can happen in two ways, the first where small investors at home use their own capital to trade for a direct gain or commercially where a firm uses its own capital to make trades to be the prime beneficially of the rewards should the trade go well. This is in contrast to how hedge funds would normally just earn a commission, by also utilising internal capital the firm is able to take larger risks, which tend to come with the larger rewards. Here's another interesting fact: "Only 6% of candidates end up making it as a professional trader" (Business Insider, 2011) This statement alone shows just how competitive the industry is, and to make a successful career is even harder, with only ~5% of traders ever making it to a managerial level. A day in the life of a trader: Behind the scenes Section 2 – How does 8 hours day break down? 6:00 AM Traders usually start the day at 6.30 AM and start to catch up on news that broke overnight that may A) affect current positions or B) provide opportunities for new positions. These changes are digested, and areas of special interest are noted for further analysis later. 7:00 AM Arrive at trading floor at 7:30, 30 minutes before markets open. This is the time where traders prepare themselves for the day. It also serves as an opportunity to talk to colleagues. For most hedge funds and other long-term traders, team meetings will happen in the morning to ensure all traders are up to speed and playing from the same game plan. 8:00 AM Markets open: based on overnight news there may be buying / selling activity to adjust the traders portfolio based on the latest information. Many traders prefer not to trade at the market open due to higher volatility as traders from around the world react to overnight news. 9:00 AM A common task around 9:00 AM would be to scan the market for short term opportunities, or to catch up on fundamental company analysis of companies in the watch list. 10:00 AM Continuation of analysis or opportunity seeking based on the traders own intuition, experience and judgement. This is also prime time for internal meetings with the team and meetings with clients, potential clients etc. 11:00 AM Here we see lower volume and volatility, and so short-term opportunities diminish, traders are thinking about lunch at this point. Finishing up financial models and analysis done in the morning. Another prime time for meetings with the team and clients. 12:00 PM Most long-term traders take lunch, some short-term traders will stay at the desk as timing can be critical to a successful day. 1:00 PM As investment banks and other major institutions return from lunch volatility in the markets increases and short-term traders get back to work. Long-term traders generally get back to analysis, risk management or strategy functions with only a cursory interest in the current market prices and volatility. 2:00 PM Day traders will spend this time monitoring positions and executing trades as necessary. Long-term traders use this period in a variety of ways, as mentioned above. 3:00 PM Short-term traders now think about closing existing positions and stop looking for new opportunities. This is also where the administrative functions of cancelling unfilled orders, or for long term traders, finalising analysis of the day and presenting it to stakeholders. This is the last chance to exit positions for the trading day. 4:00 PM The markets are now closed. Traders often look back at the day, seeing what went well (and what didn't). Management will often check in and with-it bureaucracy and paperwork. 5:00 PM Time to leave the office and go home. The advent of mobile internet means most traders are now reading the latest financial news, following commentary and thinking about the strategy for tomorrow. 6:00 PM If all went well arrive home, if not then its likely the trader will still be at the office working to meet the deadline of the day, from financial models to briefing management and clients. 7:00 PM Outside of the general workday, traders will spend much of the evening doing research and analysis – everything from learning about the markets to experimenting with financial models to taking an advanced excel course. Section 3 – Why you might want to be a stock trader We meet a lot of traders, its what we do – and here are a few of the top reasons traders we spoke to continue to do what they do. Love the Game Many traders are extremely fond of the game that is the financial markets. Day traders talk about the rush as fast-paced action that runs from 8am to 4pm 5 days a week. The same holds true for long-term traders, and while lacking the constant adrenaline of day trading the highs of closing a trade that's been on-going for months is just as great a feeling – the analogy one trader used was whereas day traders get Christmas every day, long-term traders get all of their Christmases at once, 4-5 times a year. Financial Freedom This is not just about the ability to make a living from trading and the financial markets, but from having the knowledge and understanding of the world of finance to make sound financial decisions, whether that be in deciding between a fixed or variable mortgage, or the best ways to allocate capital to save for school fees. Intellectual Challenge There is undoubtedly both an intellectual and an emotional challenge in trading successfully. While it is said that day traders trade emotion, long term portfolio managers trade on intellect and sound financial decision making. Style & Expression Traders all trade differently, from value investors to crypto speculators each trader develops a style and method of trading that fits their way of life and the perception they have of the world around them. If you are emotional in-tune with the wider world, then day trading can be exceptionally profitable. The same holds true for value investors like Warren Buffet, a trader who enjoys digesting and analysing reams of company reports to find what Buffet calls "Great companies at fair prices". This post has hopefully given you an understanding of the typical day in the life of a trader. If you feel your ready to take the next step towards a career in trading and finance, Horizon provides a comprehensive introductory course on Investing for Beginners. https://blog.hioim.com/post/a-day-in-the-life-of-a-stock-trader/ [link] [comments]  |
| Posted: 31 May 2018 02:39 PM PDT |
| What do you guys think of Ally Bank (ally) long term? Posted: 31 May 2018 06:01 AM PDT I feel like consumers are starting to realize that they are getting screwed with big banks (fees, next to nothing interest rates). People aged 50- 60 and over are unlikely to switch to them as they like their brick and mortar style bank and it may be a pain for them to transfer SSI and pensions and what not. But I think millennials will choose online banks over big banks. I constantly see posts about Ally Bank in r/personalfinance and their last quarterly report they stated they had a record number of new clients for the quarter. I was thinking about investing hard on them for long term. Any thoughts? Will the repeal of Dodd-Frank help online banks or just small state banks? Any advice would be appreciated! Thanks [link] [comments]  |
| America’s Teens Are Choosing YouTube Over Facebook Posted: 31 May 2018 07:35 AM PDT Three years ago, Facebook Inc. was the dominant social media site among U.S. teens, visited by 71 percent of people in that magic, trendsetting demographic. Not anymore. Now, only 51 percent of kids between 13 and 17 use Facebook, according to Pew Research Center. The world's largest social network has finally been eclipsed in popularity by YouTube, Snapchat and Facebook-owned Instagram. "The social media environment today revolves less around a single platform than it did three years ago," the researchers wrote in a survey published Thursday. Alphabet Inc.'s YouTube is the most popular, used by 85 percent of teens, according to Pew. The U.S. is by far Facebook's most lucrative advertising market, where it makes a staggering $23.59 in quarterly revenue per user. But that doesn't mean growth can continue forever. The company said in its most recent earnings call that it's effectively saturated the market in America and Canada, counting 185 million users in those two countries combined. [link] [comments]  |
| Posted: 31 May 2018 06:08 PM PDT Serious question: how many unique algorithmic systems are trading a large cap stock at any given time? Follow up: are most companies that employ them profitable or is there some kind of typical split (i.e. 50/50)? [link] [comments]  |
| Question about PE ratio...Please help Posted: 30 May 2018 11:08 PM PDT So I am a new investor and I am trying to figure out every term that I can. I found this one: PE ratio. I know that is Price per earnings but there is something that is bothering me a lot. For the company KHC (Kraft-Heinz) on many websites is around 6.5. So far so good. The problem is that the price of a stock is (right now) around $58.8 and the earning per share of the last year (the most recent 4 quarters) is $3.6. ( you can check it on this website reference ) If you do the math for the PE ratio (price of the share divided the last (annual) earning per share) you will end up with 58.8/3.6 and the result is 16.1 Now if you check whatever website you will see that the PE ratio is 6.5 ( you can check it on this website reference ) So I was wondering what's the problem here? I tried with several other companies and I had no problems but I don't understand what's wrong with KHC. P.S. At the end I found this website that is listing the Earning per share at $8.95 and now the math works, but I still don't understand why some website report a so huge difference. Am I missing something? ( you can check it on this website reference) [link] [comments]  |
| Posted: 31 May 2018 03:23 PM PDT I took a big risk a while back and bought a large (for me) amount of JAGX stock. It's been falling for a couple weeks from .165 to .135 and I just noticed the stock is now untradable. Can anybody point me to a place where I can get information? [link] [comments]  |
| Posted: 31 May 2018 02:03 PM PDT |
| Posted: 31 May 2018 01:35 PM PDT I'm using a questrade practice account to try to get the hang of trading and I had set my sell limit price to .4617. The stock was quite a bit below that for the majority of the day but then immediately at the Nasdaqs close the stock sold even higher than my sell limit at .465 and I made a rather good profit. What would cause this to happen in such a way? [link] [comments]  |
| Posted: 31 May 2018 09:25 AM PDT I'm going to start by saying, I do understand the concepts of "don't try to time the market" and long term investing. I have a ira and a mutual fund, which make up the major majority of my investments. Recently since the start of the year I've become much more interested in the stock market myself and have just been giving myself play money to use on robinhood, mainly been going after growth opportunities, like micron, baozun, baba, IQ, nvidia, stuff like that, and have decent gains from this year. I usually throw a hundred or so in here or there. Adds up to maybe a couple hundred a month, while still adding to my ira and other accounts monthly automatically through direct deposits. So all that in mind. Does it make more sense, in this market, with my robinhood account, to just keep buying slowly a little here and there like I have, or just hold cash for the time being a wait for the bear market and try and take advantage of having more cash on hand to buy the dip? Thanks in advance [link] [comments]  |
| Bid/Ask Prices More Important than Share Price? Posted: 31 May 2018 01:01 PM PDT Novice question. Would it be fair to say that the actual price shares are trading is irrelevant when buying or selling stocks? I've never seen bid/ask prices match the stock price so for someone interesting in trading stock should they just focus on bid and ask prices? And if so, what is the purpose of the share price? [link] [comments]  |
| Edward Snowden: the whistleblower behind the NSA surveillance revelations Posted: 31 May 2018 06:21 PM PDT https://www.theguardian.com/world/2013/jun/09/edward-snowden-nsa-whistleblower-surveillance https://www.huffingtonpost.com/entry/net-neutrality-rules-repealed_us_5a31a282e4b01bdd7659c5c4 "FCC Commissioner Ajit Pai, who was appointed by President Donald Trump, forged ahead with the vote, despite widespread opposition and a request from 18 state attorneys general to delay it over concerns that the public comment process was corrupted by fraudulent messages. The repeal proposal passed 3-2 on party lines."(edited) "FCC Commissioner Ajit Pai, who was appointed by President Donald Trump" 2013 We had a congress smart enough to put into place Title 2 regulations on Internet service providers. https://www.youtube.com/watch?v=RZIzD0ZfTFg A clean, censored slowed down version of someone who saw this in 2009 Read in between the lines, ignore the click bait titles as always.... Ironic ehhh? Coincidence? Has congress really forgot? [link] [comments]  |
| A Strategy That Makes Sense To Me Posted: 31 May 2018 12:18 PM PDT I'm new to the stock market and am learning as much as I can before I invest a dime. I'm watching videos, reading books and watching the stock market trends every day, trying to get a good idea of what to expect.... The entire time I've been learning, I've had the idea... Wouldn't it make sense to keep an eye on new IPOs/IPOs just being filed to get into companies early? Does anyone else do this? [link] [comments]  |
| Novice question: For which specific months do quarterly reports account for? Posted: 31 May 2018 10:43 AM PDT What I mean is, if a company is having a big event in June and Q2 earnings are being reported in August, will the profits from said event in June be reported in the Q2 earnings in August? Or will the profits from the June event be reported farther down the line when Q3 reports roll around? Thanks for your time. [link] [comments]  |
| Algo Trading News Headlines 5/30/2018 Posted: 31 May 2018 10:42 AM PDT |
| Posted: 31 May 2018 10:30 AM PDT $MU is down almost ten percent from yesterday's high following the downgrade from Morgan Stanley. It seems to be considered a strong stock among other analysts, consensus on tipranks is "strong buy", but there are also some question marks around the cyclical nature of the memory market and Micron's share buyback program. However, I believe that this is the exact environment where investors are spooked very easily and tend to overreact to something like this downgrade, as it doesn't hurt the original thesis at all. I would love to hear other people's thoughts on this. [link] [comments]  |
| Posted: 31 May 2018 08:41 AM PDT Comcast has been on a downward trend for a while now A long while actually Yet experts still feel it will see a MP of +$40 and are on buy/hold and none on sell Just wondering how y'all feel about the stock and if y'all are bullish or bearish I have 20 shares with an avg price at $35.38, will probably hold in hopes it pulls up [link] [comments]  |
| Posted: 31 May 2018 08:27 AM PDT Does anyone have a google sheet templet for paper trading that they would be willing to share? or excel [link] [comments]  |
| Day Trading & Swing Trading �� The Mojo Day Trade Show 5/31/2018 Posted: 31 May 2018 11:50 AM PDT |
| Posted: 31 May 2018 05:40 AM PDT Does news affect stock prices if there is no volume e.g. there is no one to sell or buy [link] [comments]  |
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