The financial market can be rewarding to both investors and traders. In fact, in the list of the world’s richest, the people who have made a fortune in the financial sector.
Know Yourself
You can call it as a pre-stage. Before moving from a novice trader to a professional you need to know yourself. Taking time to assess yourself is important because it will determine the type of trader that you are. Some of the top approaches you can decide to use in trading are:
Scalping : A scalper is a day trader who focuses on the extreme short term. In most cases, they use charts that are less than 5 minutes and hold trades for a few minutes.
Day trader : This is a trader who executes several trades per day. They also use short term charts to ensure that trades don’t last overnight.
Position trader : This is a trader who believes in buying and holding a financial asset for several weeks or months.
Value investor : A value investor is someone who buys an undervalued asset and holds it for a long time.
Become Successful step by step
It would be nice to start our career as traders and immediately become professionals who generate big profits.
Unfortunately, this is not possible, at least in 99.9% of cases. Starting to understand this and dealing with trading like any other job is the first step in making the switch from amateur trader to pro trader.
These are the steps that must make up your road to success.
1. Interest
You need to have interest in the financial market. Without interest, it will be almost impossible for you to succeed as a trader. In some cases, you might have interest in a single sector like cryptocurrencies or stocks. Without this interest, you will not succeed as a trader. Also, you will not enjoy the entire process.
2. Learning
You need to spend your time learning about the market. There are many ways to learn about this. For example: You can enroll to an online class using platforms like Udemy and Udacity. These online ‘schools’ will give you the knowledge and expertise of doing the trading.
There are several parts for learning about trading. For example, you should learn more about how the market works and then shift to the practical part. This is where you will create a viable trading strategy.
Some of the most important concepts to learn are:
Technical analysis : This is an important part of any trading. It deals with analyzing charts in order to determine whether a financial asset’s price will rise or fall.
Fundamental analysis : This is the approach that involves looking at the intrinsic value of any asset and key macro movers. Furthermore, you can also learn more about the various types of assets in the financial market.
As a trader, you don’t need to know more about everything. Instead, you can learn and be an expert in just a few assets. Examples of these assets are stocks, cryptocurrencies, and bonds.
3. Start from somewhere
You need to start trading and investing! Learning alone will not help you become a successful trader. Instead, you should do the best you can to start investing. Practice day trading is way more valuable than just study it. Fortunately, you don’t need a lot of money to do this. Indeed, there are platforms that can give you an opportunity to trade with as little as 10$
As you start, you will make mistakes, which is fine. It is these mistakes that will help you become a better trader.
4. Dont Stop what you are Doing
Keep your job or continue with your education. As you start the trading career, you might be tempted to drop out of school or quit your job. This is wrong because of the risks associated with the financial market. This means that you can see your profits disappear within a day.
Therefore, to mitigate these risks, you need to continue with your normal duties while simultaneously trading. This will give you money in the two sides.
How long does it take to be a trader
A common question among many people is on how long it takes to become a good trader. The right answer is that it depends on several things.
First, it depends on the time that a person spends learning about the process. Full time learners can take at least six months to become a good trader.
On the other hand, a person learning on a part time basis can take more than a year because of the amount of work involved.
To become a good trader, you should learn the theory of how the market works and then spend more time crafting and backtesting your strategy.
GOOD LUCK FRIENDS
