How to become a trader? Where to start a beginner in 2023?
How to become a trader
Trading is a profit trading. Trader a person who makes such transactions: buys when the asset is cheap, and sells when it is expensive. You can trade in various assets: stocks, currency, options and others.
Traders can be confused with an investor. It seems that the trader and investor are doing the same thing: they buy assets to earn money. But there is a difference.
The trader makes many quick deals to profit from each of them. For example, he buys 100 shares of 250 and sells them in a few days, when the price rises to 263 per share. There are many such transactions he constantly sells and buys something.
What you need to work as a trader
A trader can work for a bank, broker, investment fund. Or he can trade on his own, with his own money.
In the first case, the trader needs only skills. He will work with the money of customers or will be responsible for increasing capital.
In the second case, the trader, in addition to skills, will need a brokerage account and capital. On the Web there are various recommendations
someone says that you will need at least 50 thousand dollars, someone says that you can start with 200 thousand rubles.
Types of traders
All traders can be divided into several categories, depending on:
Consider the most common types of traders:
Works with minimum time periods no more than 5-15 minutes, collecting a small amount profits with each transaction. Profit is achieved by opening a large number of transactions. Scalping is considered the most stressful strategy, because on the minimum time segments, the graph shows mainly market noise and is practically not amenable to analysis. Despite such features, many scalpers make good money, because studied the intricacies of this strategy.
Another negative side of this type of trader is the inability to break away from the schedule and do other things. Scalper is forced to sit at the computer, opening and immediately closing deals, because each in scalp does not exceed 15 minutes. Therefore, before becoming a scalper trader, take care of the availability of a large amount of free time.
- Day trader
Daytime timeframe trading is popular with most financial instruments. He implies that transactions are opened and closed during the trading day without transfer to the next day.
Leaving an open transaction at night increases the risks of news factors can dramatically change the direction of the trading schedule tool against the trader.This will lead to the fact that in the morning the stock market may open with a price gap in trading called the hep. Therefore, day traders open and close transactions during the day.
Day trading is more reliable, because the trader during the day has the ability to monitor the market situation. This allows you to timely respond and close the position with minimal losses if the course goes in the opposite direction.
- Medium-term trader
Medium-term traders keep their positions open for several consecutive days. They conduct the main analysis on the daily schedule D1. At the same time, to search for the most profitable points of entry into the market and exit from it, they use H1 and 4-hour timeframes. An increase in the trading period can significantly reduce the level of error of trade signals. Therefore, mid-term timeframe tehanalism gives more accurate results.
- Long-term trader
Such a specialist works with long time frames D1-W1, transactions remain open for several weeks or even months. Long-term trade relies more on fundamental analysis than on technical. But a technical long-term trader needs here it is most reliable due to the lack of market noise.
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