Who is a Trader?
A trader is someone who buys and sells goods or financial assets, such as stocks and bonds, to make a profit. Historically, traders exchanged goods directly, but today, most transactions involve money. Financial traders focus on buying and selling currencies, stocks, bonds, and funds.
Traders differ from long-term investors as they typically look for short-term price changes in the market. They rely on price patterns, supply and demand, market sentiment, and client services to make their trading decisions.
Major Types of Traders
Traders include various market participants, such as investment banks, market makers, arbitrage funds, and proprietary traders. Here are some key types:
Investment Banks: These institutions sell shares not held for long-term investments. During an IPO (Initial Public Offering), they are responsible for selling a company’s stock on the open market.
Market Makers: They provide liquidity in the market by buying and selling securities. They make a profit from the bid-ask spread and client fees.
Arbitrage Funds: These funds exploit market inefficiencies. For instance, after a merger is announced, they quickly trade stocks to benefit from price adjustments.
Proprietary Traders/Firms: These traders work for firms to generate profits through short-term trades, using specialized trading systems and techniques.
Top Traders in India 2024
Just as there are well-known personalities in business and sports, there are also famous traders in the stock market. Here are six top traders in India:
Rakesh Jhunjhunwala
Known as one of India’s most famous traders, Rakesh started trading with just INR 5,000 in 1985 while still in college. He now has a net worth of over 3 billion USD, with investments in companies like Tata Motors, Lupin, and Titan.
Radhakrishnan Damani
Founder of the DMart retail chain, Radhakrishnan began his trading career after his father’s death. With a net worth of about 2.3 billion USD, he is the second-richest person in India, holding stocks like Avenue Supermarts and United Breweries.
Mukul Agrawal
A newer face in the Indian stock market, Mukul's aggressive investment strategy has earned him a net worth of over INR 2,000 crores. His portfolio includes stocks like J Kumar Infra Projects and Eveready Industries India.
Anil Kumar Goel
Trading since the 90s, Anil specializes in small and micro-scale firms. Despite early career challenges, he now has a net worth of over INR 1,944 crores, with investments in companies like Panama Petrochem and Star Paper Mills.
Vijay Kedia
Starting at nineteen, Vijay has a net worth of around INR 500 crores. His investments include Panasonic Energy India and Mahindra Holidays & Resorts India.
Sunil Singhania
A distinguished trader with a background as a CA and CFA, Sunil founded Abakkus Asset Manager. His net worth is over INR 2,097 crores, with investments in companies like HIL and Mastek.
Understanding the role and strategies of traders can help demystify the world of short-term market transactions and highlight the potential for substantial profits through informed trading.
Rathi
Marketing Intern
Comentarios