ARE WE UNDERESTIMATING THE ROLE OF TRADERS IN THE STOCK MARKETS?

   How exactly do you define a trader in markets? Frankly, there are no hard and fast definitions but a trader typically tries to move in and out of markets to capitalize on opportunities. Essentially a trader has a short term perspective. This can range from a single day to a couple of months but the role of a trader needs to be understood as distinct from an investor who typically allocates money for the longer term. It is quite normal for traders to bear the chunk of the blame when the markets crash. It is often alleged that overtrading or short-selling by traders led to bubbles which eventually led to value destruction in markets. While this could be partially true, it is also largely unfair to traders. The focus here is to dwell upon some very important functions that traders perform in ensuring the safety and robustness of the market. Remember, while our focus here will be on the equities market, the role of traders is similar in commodity, debt and forex markets too.

                                                                                                                      Source:-Angel Broking Blog.