What is Trader?
Trader is also understood as “the person who performs the transactions” or “the merchants”. Strictly speaking, it is a term used to describe people who are directly involved in buying or selling assets with the aim of making a profit from the price difference between trading sessions.
Assets can be cryptocurrencies, stocks, foreign currencies, gold, silver, or even gems, but usually mostly in the financial or banking sectors.
These features allow individual traders or “service” companies and financial institutions such as banks, loan funds and investment funds. Besides, you can be a full-time or part-time trader, which is also one of the reasons why this profession is so attractive.
Trader learning plan for newbies
So what does it take to become a Trader, what is its plan? Here is a specific plan for people starting from zero:
Plan each transaction
Traders need to have a clear and specific trading system. Notably, this does not guarantee 100% success, but at least reduces the risk of failure. Always ask questions so you can decide your next steps.
For example, how can I identify market trends? How long should you keep your assets to maximize their value? How to tightly control capital? What is the best time to stop loss and close order?
The Crypto market is not for those who think and behave instinctively, so act with a plan.
Choose the right Style
Understanding and choosing a style that suits your style is also a difficult choice. Therefore, you need to understand what type of transaction is right for you, what types of business, how it works.
For Traders, there are Traders who want to invest for the long term, but there are also Traders who want to trade for the short term. Regardless of the type of form, it is important to understand what type of transaction is appropriate or which asset is suitable for that transaction.
In addition to the above factors, there are some other factors that you need to consider to become a professional Trader such as: not letting emotions rule, managing capital effectively, accepting and facing challenges. , transaction on purpose, or enter into a full agreement.
The above lessons may seem like a small thing in life, but it will be a valuable lesson to become a true Trader.
Practice critical thinking
In the marketplace, difficulties and risks are always hidden behind the “delicious bait”. Unless you train yourself with quick reflexes, solid courage and a critical brain, it will be difficult for you to understand the potential behind these transactions.
Success in this market is not unheard of, but the percentage of success is only half the risk of failure.
There are things that sometimes books won’t tell you, only by trying to come out will you know all aspects of it. Notably, the shortcut is not always a straight path, early success is not necessarily permanent success.
Therefore, you need to have an early awareness of this, if you are aware, you will surely have a great strategy and mental stability.
Join training courses
Only when you understand the necessary knowledge and requirements for a Trader will you be able to evaluate and analyze the market successfully, vice versa if there are no basic necessary conditions for a Trader. then you will have a high chance of failing in this area.
Therefore, attending basic training courses is very necessary for a Trader. In addition, having professional training will help you save a part of the headache of self-studying information from many different sources. Moreover, the courses will provide the most accurate information and knowledge about the market so that you do not go astray.
Choose a quality trading system
In today’s market, there are many scam trading platforms. This makes it even more confusing for traders to decide which floor is the best quality and suitable for them.
So how to choose a trading system to know if it is right for you or not. Thereby, we have 2 evaluation criteria that cannot be ignored when evaluating the quality of an exchange:
- High level of reputation.
- Experience responsiveness, which includes: complete information, accuracy, convenience features, etc.)
In addition to the two ways above, you can consult the opinions and experiences of previous Traders, thereby making the most correct conclusions.
Terms traders need to know
You shouldn’t just listen to a few sentences or even read some Web pages to “become a Trader”, but if things were as easy as you think, there would be no poor people in this world.
Material, gray matter, spirit and time are always expensive things to become a Trader. In some respects, you have to really research thoroughly to make your decisions, even the smallest things.
In this field, profit always comes with risk, success is never easy. It’s not just about price movements but also about the transparency and legitimacy of exchanges, plus elements of transparency and safety among Traders.
Sometimes, with just one element of uncertainty, you can also face the risk of empty-handed.
As for cryptocurrency transactions, it is not yet legal in many countries, including Vietnam.
The state must not interfere in the financial affairs of the cryptocurrency market, but in some cases of loss or litigation, the most disadvantaged part is certainly the Trader.
Because they are not protected by state law, many malicious individuals take advantage of this loophole to take advantage of other “fake chicken” participants.
If you are someone who doesn’t like being bound by time or tight office rules, becoming a Trader is ideal. Because of the decentralized nature of transactions, so where and when you work is your right to decide.
Traders can freely and freely execute trades easily, whenever, wherever as long as it’s what you want.
Huge source of income
“Money can’t buy everything, but it will give us the best interests . ” The above statement reflects the reality of society the most, and certainly this is also the goal of almost everyone, not just Traders.
Becoming an entrepreneur or a rich man in a short period of time is probably not just a dream. This also applies to experienced and courageous traders.
And of course, profits will always come with a “no risk, no reward” risk. If you believe in yourself, be enterprising, success is only a matter of time.
Adapt to changes
Market volatility is a fundamental requirement for traders. In addition, they only have the right to decide to buy or sell, whether the price increases or decreases depending on the regulation of the market.
Once you get used to this price movement, you will become more sensitive to the environment or the world around you, which in turn will help traders better adapt.
To become a Trader is not an easy thing but it is not too difficult, this does not mean that everyone can become a successful Trader.
You need to have some financial knowledge in the field you intend to choose. This way, you won’t lose your investment account or experience trading failures.
In addition, you can gain knowledge from people who have experienced trading, in books, or even from real-life experiences that you have met.
When you become a Trader, you can choose the sector or asset class you want to trade. Also, if you want to invest in stocks, you can still be a Trader.
If you are interested in entering the world of virtual currency, then you are still a Trader. Therefore, you will not be forced to choose a business market.
Trader is called a profession to make money?
Trader is not called a profession, but many young people today love this job. Because it brings high income and the work is not too stressful or even difficult.
Specifically, it is a freelance job, Trader can do it anywhere without being constrained by time.
On the other hand, it is not entirely correct to say Trader is a profession, so people may think Trader is a type of job. Any profession that makes money fast is also very easy to lose.
Classification of the most popular traders today
There are many types of traders today, but the most popular are 5 types of Traders, which include:
- Insider Trader.
- Day Trader.
- Position Trader.
- Swing Trader.
- Scalper Trader.
This is the least powerful type of Trader in the market. Because they know top secret information before it’s released. As a result, they are all exceptional people and their investment decisions are almost always quite accurate.
Notably, if you are a newcomer to the market and are guided by Insider Traders, then you are very lucky. The possibility of getting the best profit is very high.
Day Traders are understood as day traders. Day Trader will not really care about profit or loss. Their job is to only execute trades at the beginning of the day, by the end of the day they will be finished.
Looking at the other side, we can see the advantages of Day Traders, such as they do not think negatively about trading frequencies or even profits received. However, if you invest according to Day Traders, this is probably a type of not calculating much, and it will be quite risky.
Position Trader is known to be one of the most patient players in the financial investment market. They will hold trades for a long time, their time is measured in years, not days, weeks or even months.
Usually these people are always confident based on their own view of their long-term strategies, so they rarely pay attention to short-term market movements.
Swing Trader is the dominant style of trading in the FOREX market, they often span trade executions over a period of days or even weeks.
But the outstanding feature that it can bring is that it does not require too much technical analysis of data, it just needs enough capital to hold the order.
The most important thing is that they can buy and wait to sell in times of market turmoil.
Scalper Traders are also known as “surf” traders, because their trading style is very fast, the trading frequency is high and many trades in a day.
Besides, each Trader’s entry and exit takes only 30 minutes, 5 minutes or even 1′.
Scalper’s ambition is to make profits based on quantity rather than quality. It is worth noting here that during the most active times of the market, they use BOT or ALOGRIM to automatically enter and exit orders this in order to streamline their trading process.
Should I be a Trader?
So that you can choose should and shouldn’t be a Trader, I will outline the advantages and disadvantages of it, so that you can consider carefully before deciding:
- If you really can do it, this job does not require a degree or even professional experience like other industries.
- In addition to studying trading techniques, Traders can act as brokers, operating channels and creating courses to sell.
- Earning profits can be very high. Besides, if you are a knowledgeable professional or have good knowledge and skills, sometimes you can get rich from Trader work.
- Because of its flexibility, it can therefore be combined with main jobs and side jobs without being limited as much as in terms of time and place of work.
- On the other hand, there are many ways to become a Trader. Besides, there will be a lot of opportunities because there are many different jobs. In addition, you can switch from a freelance Trader to a professional Trader provided you have enough knowledge and deep understanding of the market.
- Exchanges always pose risks, even scams.
- Spend a lot of time learning the knowledge related to the market.
- The power of money makes you fall in a spiral, when you have a lot but are greedy to receive more. However, the market will take it all from you.
- Not protected by law.
The above article is the sharing of experience as well as knowledge related to “What is a Trader?” . Becoming a Trader is not an easy thing, it’s not just a day or two, it’s a process of learning and trying hard to learn.