HOW TO BECOME A PROFESSIONAL TRADER
Today we are going to talk about trading earnings.
Many of you have heard about this, but only a few have tried it. Meanwhile, people who know this drill are making large amounts of money on trading platforms. Let’s understand a few important things that will help you start trading from scratch and reach a good stable income.
We are going to talk about this online earning industry for two reasons. Firstly, the trading mechanism itself is very similar to gambling. When making a deal, you constantly have to face the risk and deal with unknown factors. Even the biggest players cannot predict with certainty the behavior of particular instrument in the future. Everything is based on assumptions. The profit lies precisely in the ability to predict and work with the “inaccuracy buffer”.
Trading is based on a simple formula: buy cheaper and sell more expensive. The word “speculation” is best suited to this process, but you should not perceive it badly despite the negative connotation. This word is generally accepted in trading.
It turns out that the trader is the one who makes money on the price difference. At first glance, it is extremely clear how to act in order to win in trading. But there is a stumbling block: the relative nature of the concepts of “cheap” and “expensive”.
Trading is carried out by brokers. These are companies that provide software to create a purchase/sale order for various financial instruments.
To understand the essence of trade, you need to know its basics: how a broker differs from a dealer; you should know the meaning of “spread”, “swap”, “margin”, “leverage”, etc. As a result, in the future, you will be able to read books and relevant materials on the topic of trading, watch videos of professional analysts and develop.
There is a large amount of courses available online for free where trading is explained in detail. In addition, there are sections for newbies on the websites of popular brokers where you can find a lot of useful information.
Decide on a trading platform. Check the availability of licenses on the official websites of regulators. Read reviews to assess how trustworthy your partner is.
After you make your choice, download the terminal (software) through which you will be working.
Create a demo account to learn how to use the software. For example, you may learn deal-making process or track performance. A demo account is a great opportunity to test different strategies.
With the help of our future materials and resources, you will learn how to correctly formulate an action plan on the positions of interest. And also we will analyze classic, time-tested trading patterns. You can personally test them and give us a feedback.
Trading training should be non-stop. You cannot be complacent. Always keep learning and improving.
You can read many books and articles, attend seminars and review all the available materials, but without practical application there will be no benefit. Experience is built on analysis, and analysis is built on experience.
The ability to analyze many factors correctly, foresee and make smart decisions is what distinguishes a professional trader from a hobby player.
We will continue the analogy with gambling. Each player has his own style. For example, in poker, someone players prefer to play MTT, and some prefer cash. Some choose aggressive bankroll management, others approach the game as conservatively as possible, allocating thousands of buy-ins to the limit. There are different approaches in betting: either you put it down broadly, making a profit on the difference of the odds, or you hit it pointwise by analyzing transfers, the quality of the game, the form of teams and players.
In a similar way, trading is diverse. Below are some options and approaches to trade:
The main trading instruments can be divided into the following groups: currencies, securities, raw materials and goods.
One of the key classifications of players is the length of the trading period.
The main types of traders by duration:
There are two types of analysis: fundamental and technical.
The fundamental analysis is based on events, news and insider information. Traders keep their finger on the pulse of the tabloids, tracking the entire flow of incoming data. At the same time, it is important not only to catch the necessary information and analyze it, but also to manage to reflect this change on the transaction, while it is still relevant.
Technical analysis is based on self-isolation from information noise and focusing on price behavior. The three main axioms of technical analysis are:
An aggressive approach to conducting transactions exposes the entire deposit or most of it to risk. It is important to understand that this is a very dispersive process, and there is always a probability of losing everything. On the other hand, in the event of a successful outcome, it is possible to make large profits.
The conservative approach is based on a cautious and systematic investment of funds. Income of 5-7% per month from the amount in the account is a very good indicator. Based on the estimated rate of return, you can calculate the amount of the initial deposit to be made.
In order for trading to be successful, it is important to choose a reliable method of depositing and withdrawing funds. Undoubtedly, the best solution is using Skrill or NETELLER e-wallets.
Below are some of their advantages:
Register with Skrill and NETELLER through our loyalty program to obtain VIP statuses on preferential terms. Also, customer support to resolve any payment-related or verification issues will be available to you 24/7.