A trader should deeply understand:
1. Risk Management:
The most important aspect for a professional trader. Making profits in trading is crucial, but what is even more important is how to minimize losses. Stop-loss, position sizing, and portfolio balancing come into play here.
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2. Trading Psychology:
Greed, fear, pride—understanding how these emotions affect trading decisions and how to control them is essential.
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3. Technical Analysis:
Understanding market trends using chart patterns, support-resistance, RSI, MACD, moving averages, etc.
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4. Fundamental Analysis:
Evaluating the market based on a company, coin, or economic report. This is important for long-term trading or investment.
