What is a Stock Trader?

LearnMay 29, 2026
Timothy Cahill
What is a Stock Trader?

A stock trader is someone who buys and sells shares of publicly listed companies to profit from price movements, as opposed to a long-term investor who holds for years to build wealth gradually.

Traders aim to capitalize on shorter-term fluctuations and come in several types: day traders open and close positions within a single session, swing traders hold for days to weeks, and position traders hold for months.

Stock traders may work for themselves as retail traders using an online brokerage, or professionally for banks, hedge funds, or proprietary trading firms. They rely on technical analysis, charts, news, and sometimes fundamentals to make decisions, and on risk management to protect capital.

Successful trading demands discipline, a tested strategy, and emotional control.

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