According to the survey, trading is the smartest profession in the world. In fact, you can also consider trading as a business. As it is the modern professional in the world peoples are showing more and more interest in trading. Becoming a trader is not very hard but becoming profitable is harder than you can imagine. It needs more than just an Armani suit to consider yourself as a trader. If you noticed any ad on the trading platform then you might have a wrong idea about trading. They just show that trading is an easy money-making machine where you just can earn by clicking buttons.
It is partially true that you just need to click the button to buy and sell and before clicking that buy or sell button you must need to analyze to find out the market’s next move. So in the following article, we are going to talk about how to become a trader so it might be helpful if you are thinking about joining the trading industry.
Learn the basics
Whenever you are trying to join any industry the first thing you must need to do is to learn the basics about that profession. So the first thing you must need to learn the basics of trading. For learning that you will find out lots to web sites and many books on the internet. Learning the basics do not means the history about trading rather than how the trading market works, what are the variables that make market movements, how to place an order, what are the market available for trading etc?
You should not rush when you are gathering knowledge about trading. Because then more clear basic you have that will help you to learn the complicated part of trading. And make sure you learn the basics from reliable sources. Check this here and improve your knowledge by going through the free resources at Saxo.
Learn to analyze the market
When you have learned the basics about the trading market then the next thing you must need to learn how to analyze this market. There are two types of analysis of the trading market. They are fundamental analysis and technical analysis. Fundamental analysis mostly depends on the financial and economical announcements that come frequently which affect the market in a significant way.
Fundamental analysis is very effective while you are thinking about a long trade. On the other hand, technical analysis is mostly done by using a set of tools according to traders’ preferences to identify potential trades and this analysis is very effective when you are thinking about opening short-time trades. So after learning the basics about trading you must need to learn how to analyze the market.
After you learn about the basics of trading and how to do the market analysis you can think about starting to trade. In the beginning, if you try to open an account and invest money in that then you will lose your money. You must need a full-proof trading strategy to have a profitable trading career. For making a trading strategy and practice trading you just need to trade with a demo trading account.
Trading with a demo trading account helps a new trader where his weakness is and where he is making mistakes. When a trader is trading with the real trading account, if he makes any mistakes it will hurt his trading balance. While trading with a demo account, develop a trading plan with proper money management rules. And keep on trading until you are confident enough with your trading strategy.
You must follow these three steps if you want to become a profitable trader. After completing these 3 steps you might think about invest in trading business. Never invest until you are confident enough with your trading strategy. Always keep in mind that only invest the amount which you are ready to lose. So we hope this article will help you to become a trader.