1. Retail Trading Operations
Account setup – Open an account with a broker (e.g., Binance for crypto, Interactive Brokers for stocks, MetaTrader for forex).
Capital allocation – Decide how much money to risk per trade (risk management is key, usually 1–2% per trade).
Trading strategy – Could be technical analysis (charts, indicators), fundamental analysis (news, earnings), or algorithmic trading (bots).
Execution – Place buy/sell orders (market, limit, stop-loss).
Monitoring & adjustment – Track open positions, move stop-loss or take profit levels.
Review & journaling – After trading, log results to improve strategy.
2. Institutional Trading Operations
Research team – Analysts study macroeconomics, sectors, or price data.
Trading desk – Professional traders execute orders for clients or the firm’s portfolio.
Risk management – Strict systems in place to control exposure, hedge positions, and diversify.
Technology – Use of high-frequency trading (HFT), algorithms, and direct market access.
Compliance – Must follow regulations and internal rules to prevent excessive risk.