Trader Profiles

Trader Profiles

1. Utilitarian Traders

   • Investors and Borrowers
     • Buy or sell real or financial assets
   • Asset exchangers
     • Bartered trades in cash or spot markets
   • Hedgers
     • Reduce exposure to risk
       • Combining businesses
       • Derivatives
         • Financial Markets
   • Gamblers
     • Bet on future volatile events
   • Fledglings
     • Trainee traders (in practice)
   • Cross Subsidizers
     • Extra broking services used?
     • Over-trading
   • Tax Avoiders
     • Find tax loopholes to minimise tax
       • Tax deferral
       • Dividend capture/stripping

2. Profit Motivated Traders

   • Speculators
     • Informed
     • Parasitic
     • Technical
     • Predict future price changes from relevant info
   • Dealers
     • Supplies liquidity
     • Buy at bid, sell at ask
     • Understands market value

3. Futile Traders

   • Expect to profit but don't
   • Inefficient
     • Pseudo-informed
     • Victimised
     • Rogue