Financial independence is becoming an increasingly important criterion when choosing a future profession. People of different specialties and with different backgrounds are looking for profit opportunities in addition to their main job.
Employment does not allow living in abundance. Most of us have enough money only for basic needs, such as food, utilities, clothing.
A working day from morning to evening and a busy weekend do not leave time for the development of other aspects of life.
But what about hobbies, travel, personal relationships, self-development? All this versatility of life is taken away from us by employment.
The profession of a trader opens up new opportunities for profit and the formation of a free work schedule.
Moreover, the financial prospects of this type of activity are unlimited. And when and how much work you can choose yourself. If you are thinking about what a trader is, it means that your workdays do not bring the proper level and quality of life.
Who are forex traders?
A trader is a trader who tries to profit from the trading process. As a rule, this term means a trader of securities, currency, metals and goods on the stock exchange, the Forex market or on commodity exchanges. Forex traders analyze the current situation in the currency market and enter into transactions for the purchase or sale to make a profit.
Everyone is able to speculate on Forex, and you can work all day or just a few hours - it all depends on desire, strategy and the availability of free time. Not all traders have a special education, and even vice versa, the majority of Internet speculators in Russia are self-taught who have read mountains of literature and tested thousands of strategies in order to choose one that is more profitable.
Unlike self-taught, professional Forex traders can have a special license and education that allows them to take clients' money into management. They work in banks, dealerships or brokerage houses. Some experienced traders provide paid training or release their own information product, which allows them to deal with the features of this confusing business.
How to start a career as a trader?
To start trading in the Forex market, you need to go through several stages of becoming a trader - from a beginner to a professional. Those who are interested in what a trader is can use the services of training courses or engage in self-education - searching for information in highly specialized forums, watching webinars, reading literature on stock trading.
Courses for traders are available at almost every dealing center. If financial opportunities allow, you can go through a program for beginners or online training. But in most cases, such courses do not provide the necessary knowledge for trading, but only introduce you to the basic concepts and basics of trading.
Immediately after completion of training, it is not recommended to open a real account. It is better to try your hand at a demo - this is a training version, which differs from the real one only in that the trader in it works with virtual money. All data, including quotes, reflect the actual state of affairs for the selected instrument.
Types of Trading
Some traders spend all day at the monitor, while others manage to combine trading with several types of activities. The time that the merchant must spend near the computer depends on the chosen strategy.And she, in turn, is selected individually, depending on the psychological characteristics of the trader, the size of the deposit, the availability of free time for trading. When choosing a strategy, market participants are guided by two main approaches: short-term and long-term.
Short-term Forex Trading Types
We have already figured out what a trader is, now it is necessary to decide what scalpers, investors and day traders do.
A day trader is a trader who speculates within a trading day or during a single session. Transactions are opened and closed within one day or at the end of the day, without transfers to the next. Day traders analyze the market situation with the help of technical analysis and news events.
A scalper is a high-frequency trader who earns on any price fluctuation, regardless of where the main trend is directed. On the day, he can open ten, twenty (or even several hundred) transactions, which last from a second to several hours.
Scalpers "scalp" the market in the form of small profits (from one point), preventing the profit from increasing. But in this type of trade it is inadmissible to “spend losses” - to keep the negative position open in the hope that the price will turn around and go in the right direction. Scalping is considered one of the most intense types of trading and requires iron discipline and a strong nervous system.
Position traders open and close deals within a few days, focusing more on short-term trends. To analyze the situation on the market, they use technical analysis on the H1-H4 timeframes.
Long-term Forex Trading Types
Mid-term trader opens deals, focusing not only on technical analysis, but also on fundamental data. Charts D1 and W are used for work. The frequency of transactions is very low - several positions per year for one instrument. Along with investing, medium-term trading does not require constant monitoring of the selected instrument, therefore it allows you to use several currency pairs for trading.
Investors carefully analyze fundamental events around the world before opening a long-term position on a currency pair, so they need to be well versed in international politics. They should know the correlation between the currencies and take into account that any event in one of the countries whose currency they use to make a profit can lead to a change in the global trend. Long-term transactions may remain open for several years.
Disadvantages of the profession of a trader
Forex trading is not an easy job. A trader works and invests his own money, and as a result may receive losses. The market is unpredictable, the price can begin to move against the predicted movement at any minute, therefore market participants are in constant tension, every second analyzing the probabilities of the behavior of the currency pair.
Many traders are disappointed because at the beginning of their careers they rely on advertising slogans about super-profits, and as a result receive a modest percentage of their deposit. And this is in the best case, if they are disciplined to trade in a profitable trading system.
Even having developed his system and learning how to get a stable profit, a trader should have flexible thinking and not relax, since the market is volatile. Those strategies that once worked, providing stable profit, at one point begin to "drain" the deposit and give signals for opening unprofitable positions. Even successful traders with vast experience experience such periods.
Trading Advantages
Many are interested in the advantages of being a trader. Reviews of unlimited financial opportunities are prompting an increasing number of people to open deposits and start trading, despite the risks and dangers.The work of a trader differs from many professions in that it is impossible to be sure that at the end of the month you will receive a certain amount - a salary. But those who have learned to trade can afford much more than the average employee from any field of activity.
The best traders earn a lot of money both on the currency trading itself and on educational information products that they distribute through their own sites or at various trainings.
Traders are able to plan their work schedule on their own. They do not obey the leadership, do not follow the orders of others, do not adhere to the corporate culture. Traders work to achieve their goals in a mode convenient for them.
Dictionary for the trader
A new profession involves the presence of new vocabulary - words that are used by specialists in this field. In trading, such a dictionary of special terms is also present. Therefore, if you figured out what a trader is, you need to start professionalism and slang.
At first, everything will not be very clear, and you will have to look in the dictionaries for concepts such as "exponential moving average" or "divergence".
In addition, in forums dedicated to trading, traders use special slang. For example, bulls are traders who buy and adhere to the idea that the price will rise. They are opposed by bears - traders and investors who are confident in the fall in the price of this trading instrument. If a trader lost his deposit - this is called a "drain", but earning a large amount from a small deposit is an "acceleration".
Both slang and special terminology are necessary for understanding and perceiving information, reviews, forecasts and literature on exchange trading.
Successful traders
To understand the way of thinking and the path to success of the “rich and famous of this world,” you can read books and biographies of such prominent personalities as Warren Buffet, George Soros Phillip Fisher, Benjamin Graham, Alexander Elder. The most famous international investor traders who have earned billions in exchange trading are role models and idols of many newcomers.
