trade there specialized term used to refer to the person carrying out the transactions. A Trader can be an independent individual or an administrator of a financial institution or other individual. So what are the Trader job details? How to become a successful trader in the financial market? The answer will be in today's article.
trader concept
While Trade is defined as an act of trading, buying and selling financial products such as stocks, commodities, Exchange, virtual currency, etc., Trader is understood as a noun that indicates a person or profession. When an individual makes transactions to buy and sell shares, commodities or exchange foreign currency, virtual currency, etc. on exchanges, this person is called a Trader.traders). As far as Trader is concerned, we are referring to short-term speculative strategies and the profit received is the difference in prices of products, it is the opposite of Investor (investors) are those who trade in the financial markets with long-term plans.
What is Trader?
As mentioned in the content above, Trader is not simply a term that refers to a Trader, but also to a profession. So, with the Trader profession, what jobs will we do? What are the advantages and disadvantages when choosing the path of being a Trader?
trader's job
With Trader, the main working environment will be on the phone, computer or other online devices. Therefore, the space or work environment is also quite comfortable. It can be in the office, cafe, library or at home, etc. It depends on whether you are a freelance Trader or a floor specialist. But if you are a freelance Trader or work for the trading floor, a Trader's daily work should still include the following 3 main things:
- Daily news updates, news aggregators and fundamental analysis.
- View price list, technical analysis of each product code to identify the main trend of the day.
- Trade with the tickers in your portfolio.
In the financial market, there are many trading products, from stocks and commodities to forex and cryptocurrencies. Each product will have its own knowledge base as well as information. Depending on your choice of which product you wish to trade, you should update and add information and knowledge for that product.
The special features of the Trader profession
Each industry has its own advantages and disadvantages and Trader is no exception. Nowadays, many young people choose this job because it brings them high income, the nature of the work is not very stressful and it is not limited in terms of time. However, we need to understand one thing, any profession that makes money fast, the rate of losing money will also be very high. Therefore, the advantages and disadvantages of the Trader profession are:
- about the advantagesTraders can freely choose to work as employees of brokers or be financially independent. This diversity of jobs encourages young people because they are not too constrained or linked to companies and organizations. Because it's possible to be financially independent, anyone can do it and it doesn't require a degree like other professions. Also, if you have good knowledge about the market as well as good market analysis skills. You can absolutely sell your trading signals or open courses. Finally, the Profits of Trader profession will be relatively high, sometimes you can get rich quickly.
- Defect of the Trader profession, as it is the trend of many young people, few take the profession seriously. For the rest, see this as a get-rich-quick scheme. Therefore, the challenges for Traders are many. Money temptation, if you win $ 100 today, you may also lose $ 100 tomorrow or even more if you don't control your greed. When you take the profession seriously, practicing analysis and negotiation will also consume a lot of your time. And you must remember, this is the financial market. Exchanges or international exchanges have many potential risks, from technology, information to fraud issues….
So whether to become a Trader or switch to a Trader should depend on each one's choice, if you are a person with solid potential, it will be simple. But for a beginner it will be very difficult and risky. Why, no one knows what will be tomorrow? So think carefully before choosing.
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Factors Traders become professionals
subject
The first thing to be able to survive in the market is discipline. Discipline here includes:
- emotion management, when trading where you are influenced by emotions, there is certainly no need to analyze and provide trends. So please control your emotions well, always keep a cool head when trading.
- Risk management, you should anticipate all situations that occur when trading. Know when to enter or exit an order. Place TP/SL orders to control your trading profits and losses.
- Capital Management, which always sets the ratio R:R (risk reward) to your account. If one of the two levels is reached today, you should stop trading and continue the next day. Also, you need to know the rules for using your capital. Never use more than 50% of capital to trade. In the trading account, there must always be excess capital to manage risks and market swings. Only then will your money be safe.
See also: The simplest way to calculate the Risk Reward Ratio
Knowledge
Investing without knowledge is no different from staking. This is absolutely right. If you only know how to place buy and sell orders, but you don't know why to buy, why to sell, you will really invest. To be called an investment, you need to learn and learn the concepts and knowledge that exist in the market. For example, fundamental analysis, technical analysis, information selection, etc. From there, we can build a basis for our speculations.
goals and plans
Finally, there are goals and plans. Not just Trader's job but every profession needs goals and plans to implement. You need to set goals and make a plan for those goals. Only then will you be able to survive and profit from the market. There have been many Traders who put a lot of money in the market but don't know what their trading objective is. Trade in a disjointed way and the result is to burn all that money. You can create your own portfolio. From there, determine which product your goal is to trade with? Plan how to collect and analyze the product. There should be a step-by-step process so that you can confidently trade the market.
Conclusion
Above is the article “What is a Trader? What to do to become a professional Trader” we hope that with the information and knowledge we present, you will have a better view of the Trader and what you need to do if you want to become a Trader. Be wise in choosing your path. Prepare yourself, your baggage of knowledge, as well as a long-term plan for the future. Wishing you success in your trading career!
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