Market Participants

Main Market Participants includes Traders, Brokers and Analysts. but many get confused between these individual participants. It should be noted that all the market participants have specific role in the Stock Market.

Who are Stock Traders? 

Persons who are involved in buying and selling of equity stocks. A stock Trader may be an Investor, Agent, Speculator, A stock investor is an individual or company who puts money to use by the purchase of equity securities, offering potential profitable returns, as interest, income, or appreciation in value (capital gains). At the center of stock trading is the stock trader, who executes the transactions that exchange currency into equity stock and vice verse. Based on duration of stock holding, the different types of stock trading can be classified as:

• Day Trader: It is a type of stock trading where both buying and selling of a financial instrument is done on the same day and all the tradings are closed before the market close for the day. Traders who participate in day trading are called active traders or day traders. Day trading demands fast decision and fast action. 

• Short Term Trading: A trade period of more than one day to a few weeks is considered as short term trade. A stock is bought and held in position from one day to a few weeks. 

• Medium Term Trading: A trade period from a few weeks to a few months is considered as medium term trade.

• Long Term Trading: In this type of stock trading, stock is held for many months to many years. Investment decision is made by fundamental analysis of a stock. Profit from growth of the company, dividends and bonuses attracts this type of stock trading.

Stock traders plays different roles -  

• A stock trader's client may put in an order to buy or sell, with the provision that the trader executes the order immediately upon receiving it. 

• In other cases, a stock trader are given the authority from his client to buy or sell stock at what the trader believes will be an optimal time according to him. Granting a stock trader this authority necessitates a high degree of trust in the stock trader's talent at timing a stock purchase. The idea is that a stock trader will do a better job of picking the appropriate time to buy the stock than would an amateur investor engaging in stock trading. So, new and inexperienced investors normally does trading through a Broker in order to reap greater benefits.

For an effective Analysis of Stock Market, there is prime need of absolute Real Time Data for Stock Market Traders as it drives most of the factors that decide the forecast of the Market Trend. One very good Real Time Data provider is www.rtdsdata.com who provides truly real time data feed for effective analysis. Quality, Price, Support, Data Accuracy & Integrity of Real time data should be looked after while judging the Data service Providers.

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