In our rapidly changing world, there is always something new to discover. It applies to everything and professions too. However, some professions seem to be well-known and have existed for a long time, but ask what they mean, so many will not even be able to describe the essence in detail. For example, such a profession as a trader leading its history from the 15th century, when the first commodity exchanges began to appear, albeit in a form far from modern understanding.
The fact is that the profession, of course, is well-known but not in plain sight. Unlike, for example, the job of a doctor, teacher, policeman, or builder. So, what is a trader, and how to become a trader? How are these earnings different from what you can get in andar bahar online cash game? So, let’s understand, and we will start, of course, with who a trader is. Otherwise, it will be challenging to understand who you want to become.
Who is a trader?
The definition of a trader is different from the designation of the professional activity of a salesperson behind the counter or a manager from the sales department. Instead, this term refers to people trading on the stock exchange, foreign exchange, and various commodity markets.
For example, a person who trades in the grain market is called a grain trader. A person who deals in oil is called an oil trader. In addition, about a hundred so-called “exchange goods” are traded on commodity exchanges.
Thus, the profession of a trader has its specializations, by analogy, with many other jobs. So, there is a surgeon, a therapist, a pediatrician, an ophthalmologist, a teacher of physics, chemistry, literature, and music; there is a frontend and backend developer. And so everywhere. Therefore, a person who has firmly decided, “I want to become a trader,” must determine what he would like to trade. And only then begin to figure out what it takes to become a trader.
Everywhere there will be nuances of a financial and technical nature, which you will have to delve into to avoid losing your money. In principle, an already established trader can work simultaneously with different assets; however, for beginners, the best option would be not to scatter efforts but to delve into the profession consistently, step by step.
How to become a trader from scratch?
As you already understand in the most general way, traders can trade on the stock, currency, or commodity market. You can start with the most popular option in our country – the Forex currency market. It is with him that experts advise all beginners who have yet to become familiar with trading to start.
And only after you have mastered the operations with the purchase and sale of the most popular currency in such a way as to always remain “in the black” may you wonder how to become a trader in the stock market or a cryptocurrency trader. Here, in addition to trading, you will need to understand what you will trade: securities, cryptocurrency, etc.
As in any other profession, trading requires prior training. There are a lot of offers on how to become a trader on the Forex exchange and training courses. How to choose? The main thing to focus on is the availability of a license from the Central Bank and an offer to open a demo account.
A demo account or account on Forex is a training simulator on which you can work out real trading techniques without risking your money. In the demo account, you operate with virtual money. You can see what consequences specific actions of yours can lead to.
If the training company does not offer such a demo account, you can safely say goodbye to the company. Otherwise, you will have to say goodbye to your money very soon. Hypothetically, you can open a demo account and learn trading wisdom. A demo account is a unique terminal program you need to download to your computer or gadget and a virtual deposit.
There are also many proposals for entering the market and for those who need more capital, too. But, of course, in this case, you should understand that without investments, you won’t have to immediately count on high profits, even if you perfectly master the theoretical part.
Let us now briefly summarize all of the above. First, how to become a trader from scratch – step-by-step instructions:
- Decide what you want to trade. Experts advise starting with Forex.
- Choose a training option and a broker. Experts advise learning from the broker through which you will work in the future. First, make sure he has a license from the Central Bank and can open a demo account.
- Practice all the knowledge and strategies gained during the training on a demo account. Experts recommend training for at least 10-20 days.
- Open a trading account. Experts advise you to carefully study all the possible risks associated with opening an account in advance.
- Trade and earn.
It, of course, is only a general scheme of how to become a trader, where to start, and what to pay attention to in the first place.
What education does a trader need?
Formally, there are no education requirements for those entering trading training courses. And no one asks those who want to open a demo account for a diploma. However, it is intuitively clear that in the raging sea of investments in securities, currency quotes, and prices for oil and grain, people with higher financial or economic education feel more confident.
In addition, a mathematical mindset will serve well, so those who have received a mathematical education have every chance of success. Especially if there is a desire for stability and to officially get a job in a company engaged in trading on the stock exchange, and not rush into the maelstrom of independent trading, as they say, “with your head.”
Where to work as a trader?
Most of the advertising campaigns that invite traders to take courses and tell how to become professional traders emphasize the trader’s independent work and complete independence. And also, on the fabulous earnings you can get lying under a palm tree with a laptop somewhere in the Bahamas.
All this, of course, is good. Still, the path “from scratch” to some decent income, which allows you not to depend on sitting in the office and a guaranteed salary, can take a couple of years. And again, not for everyone because a significant percentage of people who are not too serious about learning, choosing a broker, and testing different strategies, are left with nothing, even losing what they invested as start-up capital.
Suppose you follow the path of official employment. In that case, you do not risk your own money because you can only manage the funds of the employing company within strictly limited limits. True, such work is similar to any office job or the job of a sales manager who has a salary plus a percentage of the profits.
However, suppose you could be more decisive and temperamental and meet the above requirements regarding education and knowledge of English. In that case, you have a reason to consider this start option. Stock, commodity, and financial exchanges can be your employers.