when using technical and market timing information traders analyze past and current market data to spot patterns and trends this is to anticipate future price movements in assets such as stocks bonds futures currencies or commodities 
traders use technical analysis and other market timing information to identify buying and selling opportunities they use charting techniques and momentum indicators such as moving averages and oscillators to accomplish this examples of market timing information include economic and financial releases as well as market sentiment indicators noise trading involves making decisions on factors that seem to be helpful but would usually generate profits equivalent to a random choice some of these factors can include rumors gossip or emotions noise can create market imbalances that rational traders can profit from also noise traders are often associated with retail or inexperienced investors who lack the necessary tools to profit from trading sentiment refers to the overall view of financial market participants this can be bullish neutral or bearish these views can be toward the financial markets or various assets such as stocks currencies or commodities market sentiment can be attributed to factors such as economic and financial data geopolitical events or company news sentiment indicators are based on data comprising trading volume price movements and news coverage of financial instruments or markets sentiment is also developed through the quantification of surveys or polls the data helps to gauge the level of optimism or pessimism in the financial markets contrarian trading involves analyzing market conditions and taking an opposing side of the prevailing consensus view of the financial markets this is based on the premise that market participants often overreact to events leading to significant price movements in financial markets contrarian traders identify overbought or oversold conditions in conjunction with trend reversals high conviction in the trades are required as the contrarian view by its very definition is often unpopular successful contrarian traders employ a rigorous analytical process to identify potential opportunities and carefully manage risks to avoid significant losses 8arbitrage refers to exploiting price discrepancies between two or more instruments or markets the assumption calls for taking advantage of mispricing in different markets buying an asset in one market at a lower price and selling the same asset in another market at a higher price producing a profit these opportunities can occur in stocks bonds currencies and commodities over different exchanges or geographical regions arbitrage occurs because of market inefficiencies or temporary imbalances in supply and demand 9becoming a traderearning a role as a trader in the financial markets can involve a significant amount of preparation including education training and licensing most entry level trading jobs require at least a bachelor s degree with employers often seeking graduates who have majored in business economics and accounting a master s in business administration mba may be an important qualification for higher level positions at trading firms 10companies that hire traders generally offer employee training programs that focus on the business and the particular types of assets sold by the firm brokers and investment bankers working with registered firms must obtain a license from the financial industry regulatory authority finra which involves passing a series of examinations to verify their knowledge of the financial markets additional professional certifications such as the chartered financial analyst cfa designation and the chartered market technician cmt designation may expand a trader s opportunities and chances for career advancement 10salary and employment outlookmany people may be interested in working as a trader because of the possibility of earning a substantial paycheck for traders working on their own behalf generating income will depend on implementing a successful trading strategy and effectively managing risk meanwhile traders working for financial firms may earn a base salary with the potential for a substantial bonus based on their performance 11according to the u s bureau of labor statistics bls as of may 2021 the median annual wage came to 62 910 for securities commodities and financial services sales agents a broader category that includes many traders those working specifically in securities commodity contracts and other financial investments and related activities earn a median annual wage of 98 030 11if that level of income seems attractive there is good news about the employment outlook for the industry as predictions call for a healthy availability of jobs over the coming years the bls estimates that employment for securities commodities and financial services sales agents will grow 10 from 2021 to 2031 exceeding the average for all occupations while competition for these positions may be intense given the necessary skills involved the bls estimates that 46 600 job openings per year in this area over the decade 12