5 Things Consider before becoming a Full-Time Trader
Before trying to become a professional trader, you need to understand what this concept includes. In fact, such a specialist receives the main income due to the fact that he buys cheaper and sells more expensive (other options are also possible, for example, receiving dividend income on shares purchased on the stock market). Naturally, such activity is associated with a certain amount of risk – an error in determining the direction of price movement will not lead to profit, but to serious losses.
At the same time, with certain knowledge and skills, even novice participants, working with minimal risk, can expect (depending on the type of trade) 0.5-1% profit daily or 100-200% per year. The accumulation of experience and the constant acquisition of new knowledge will allow everyone to become a really good trader with a significantly higher level of income.
To become a trader you need:
- Certain baggage of theoretical knowledge;
- Practical skills;
- The ability to make real deals and get real results.
In this regard, everyone who wants to learn how to trade must take several steps.
One of the first and most important steps is to complete the training. Often, beginners refuse to start trading just because they are faced with unfamiliar or obscure terms, they cannot understand events or recommendations. Consult professional agencies like Certus Trading, Barclays PLC, and, JPMorgan Chase & Co.
Some, having made a couple of transactions on an intuitive level, lose money, become disappointed (along the way, they believe that they were deceived in advertising – after all, incredible profits were promised), and leave the market forever. This happens only due to a lack of theoretical knowledge.
Replenishing it is not so difficult. In the age of information technology, almost any information can be obtained in just a few minutes and with Certus Trading reviews it seems like anyone can be a professional at trading. This also applies to the theoretical information required for trading.
What does it take to become a successful trader? There is not so much to master:
- Basic concepts – quotes and financial instruments, exchange rates and stocks, indices, long and short trades, types of trading, leverage, etc.
- Types of market analysis – fundamental and technical.
- The psychology of a trader when making deals and the behavior of the masses in the market.
- Fund management strategies (so-called money management).
- Knowledge of basic concepts will allow you to freely navigate the flow of news and messages from analytical services, correctly calculate the volume of transactions, possible profits, and losses.
The main thing that a futures trader will get is an understanding of the market mechanisms and work on them. This knowledge lays the foundation for successful trading. Making a profit is impossible without predicting the price movement of the selected instrument. To understand his behavior, several techniques are used, which are combined into two types of analysis:
The first establishes a connection between the trends observed in the market and events and phenomena in the economy of the world and individual countries. Examples include the impact of inflation and unemployment rates, decisions of central banks on current interest rates on stock indices, and exchange rates.