Trader (trader)
Who is a trader?
Trader (from English to trade) - a person who trades, a trader. The term is used for financial markets for those who trade relevant instruments - currencies, securities, commodities, futures, etc. Accordingly, a currency trader or trader is a person who trades currencies at market .
What kind of traders there are on the foreign exchange market?
There are several conventional methods of grading for traders.
According to the degree of professionalism traders can be divided into professionals and amateurs:
- Professional Trader - a person who has received an appropriate education and works as a trader in banks, DCs, investment funds or independently. In other words, a professional trader is a person for whom trading on the foreign exchange market is the main means of income, his profession.
- Amateur Trader - a person for whom trading is not the main way of earning, but a way of additional earnings and multiplying their funds.
Traders can differ in the method of market analysis:
- Traders who use technical analysis
This group includes traders who use a variety of tools to analyze the foreign exchange market technical analysisThe following methods of analysis: graphical constructions, readings of technical indicators, candlestick, wave and other methods of analysis.
- Traders who use fundamental analysis
This group includes traders whose trading is based on fundamental indicators: macroeconomic statistics, of the Central Bank's monetary policy, stock market and economic events, etc. This method of analysis requires appropriate education, skills to work with large amounts of information, etc.
- Traders using their own methods of analysis
Traders of this group perceive trading more as a gambling process, using various methods of opening and maintaining positions based on the theory of probability, such as the Martingale method.
- Intuitive traders
This group of traders is not numerous. It includes professionals with great experience, which allows making trading decisions intuitively, just by looking at the price chart.
According to the method of trading currency traders are divided into the following groups:
- Scalper (pipsitter) - The trader who opens a large number of short-term transactions with a minimum profit during the trading day.
- Intraday trader - The trader who opens positions during the trading day and, obligatorily, closes them at the end of the day.
- Short-term, medium-term and long-term trader - are differentiated by the time of holding an open position: from one to several days, from several days to several weeks, from several weeks to several months, respectively.
Of course, such a division of traders into groups is rather relative, because a trader can combine several methods of analysis, increasing the effectiveness of his trade.
What do I need to know to become a trader?
To become a trader, as in any profession, you need to master a certain basic amount of knowledge. Two variants are possible here:
- Training on the courses of traders
Most DCs conduct training of traders both on their training facilities and remotely, by means of webinars. A diligent beginner is guaranteed to get necessary basic knowledge for trading on , but all courses are paid, the size of payment depends on intensity of training and on the DC policy.
- Self-study
A beginner interested in trading can use training materials which are overflowing with Russian-language and other Internet resources. Training, of course, will be free, but the large volume of training articles will force a beginner to spend a lot more time on training.
- Free Download or 3 Steps for the Beginning Trader on the Internet
- Is profitable trading available only to "nerds"?
How to become a currency trader?
Trading is carried out through the client terminals of brokers, dealing centers and commercial banks. To start trading it is necessary to choose a company that provides trading services, register with it, download the trading terminal and open an account.
To improve trading skills for novice traders, all companies provide the opportunity to open demo account, on which the novice trader trades using virtual money.
Demo account helps beginners not only to determine the method and type of trading, improve trading skills, but also to choose the most profitable and effective trading strategy without the risk of losing your money.
After a beginner trader's trading on a demo account becomes profitable, he can switch to a real trading account, which can also be opened at any broker. Having already deposited his real money into the trading account, the beginner trader can start trading on .
Communities and online resources of traders
Sooner or later the beginning trader begins to realize that the basic amount of knowledge obtained in the traders' courses or independently is not quite enough for successful trading, and proceeds to further self-education.
For currency traders there are their own online marketplaces or forumswhere everyone can find the necessary knowledge, ask the advice of experienced traders, learn new trading methods and rules, get acquainted with the latest developments in technical indicators and trading strategies, as well as share their own and learn other people's opinion about the situation on the foreign exchange market.