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Thread: How To Become A Trader

  1. #1
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    How To Become A Trader

    Hello guys! Thanks for coming to my thread!
    Did you ever think why that there are so many traders that keep on failing and loss a lot of money? very few traders can success in here despite everything they have been trying too. Have you ever imagine how would it be to become a boss on your own, success with your own trade, seeing profits rolling by sitting in front of you computer? Surely all traders wish to see all of that are lacking a lot of things in here and they did not realize it or even trying to change them!

    First of all, there are a lot of difference as for types in trading!

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    1. Day Trader

    Day trader are the trader that open and close the position within 1 day timeframe. It is almost correct that they will close the position before 24 hour timeframe in the market has passed.

    2. Carry trader

    This type of trader is the one that will hold a position for multiple days. Usually the carry trader might hold a position for 1 week and the longest of it might be 2 weeks. If you want to become a carry trader then you will also need to calculate the cost of carry or it might seem more familiar to think of it as swaps. Swaps will increase and decrease depending on the interest of the currency you are holding versus the one you are selling.

    3. Investor

    There are almost no difference between a trader with this type of trading versus the carry trader but the positions they hold might be unusually long. At least, each position will be hold for 1 - 3 months and there are several ones that might even hold it over 1 year if the carry cost is positive for them.

    Each type of trading style is good! But the real problem will be how you can make the successful trade and make the profit in here!
    What you need to do in here might just be:

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    1. Check your own condition HONESTLY.

    A success trade will need a lot of factors such as knowledge, skills, insights, informations and the commitment to your own style. We also need to check whether we are good in mathematical analysis, possess a full knowledge regarding financial markets especially the fundamental views and aware about the psychology of the market and ourselves.
    Actually, trading is not simple at all and they need a lot of things such as long working hours (since you need to keep watching every possible data, changes in politics, policy and the fundamentals of the market), commitment for your own work, little leave from the monitor, continuous learning (some traders will find this harsh since they are not getting any guidance from others while some might just pay for this), risk taking abilities (if you can't take the risk then you will not be able to trade at all).
    if you are unable to prepare yourselves to devote everything only to trade forex, give enough time everyday to learn, mentally prepared to take the risk and suffer loss then YOU CAN'T BE A TRADER.

    2. Prepare the money

    We can't trade if we don't have money in this business. If we want to trade then naturally we will need a certain some of money. We also need to learn that traders always need to prepare a sufficient ammount of money to be traded. No one ever can keep generating profits consistently. There will be loss and gain which is a part of trading. Entering this business with a small ammount of money is a certain way of failure already. Most traders might be making small money but 1 mistake might just make them end up bankrupt since they do not prepare enough money or the market moved with a big jump or gap suddenly and make them bankrupt such as the flash crashes. (You can check a sudden jump from GBP with 1.28 level in 5 sec to 1.14). If you are going pro then at least $100.000 will be needed for you to trade with 1 lot per trade. That means the normal standard risk management is to make your account to hold out for 10000 pips. And i believe most members here will just try 0.01 lot per trade which means they need at least $1000 at minimum. If you are trading bigger than that such as 0.05 lot per trade then you need at least $5000 for that. But surely, this will depend on the trading plan and the selection of the traders themselves but usually novice that try to use their own formula in here ends up losing everything.

    3. Understand the Market

    In order to trade, a trader will need a solid knowledge about how the market functions. The example might be if the data good then a pair will be bullish but sometimes even if the data is good, the pair will be bearish because it is not high enough as for what the market expected. What we can call solid knowledge is that you can become one of the market participants that know that high data is insufficient to make the pair move even higher at this point so it is time to close your trade. So, you need to understand the psychology of the market and what they are thinking and expecting. In order to do this, you will need a wide knowledge base no matter what!

    4. Understand the Products to be Traded.

    You will always be required to get a full understanding of what you will be trading in this business. Whether you want to choose Stocks, Forex, Options or even Commodities, you will require a full understand of the trading requirements and each characteristics of them. If you fail to comply to this, your own trade will be a gamble and fail in the end. Some of the things we might need to know such as the margin required, when the market will be closed, when the contract will be renewed or expired (such as OIL Trading) and the carry cost for each of them.

    5. Design a Trading Strategy

    Trading strategies in this business usually only got 2 difference. One is for making money for a longer time which take lesser risk and longer time which is very safe. Other one is gaining money over the short time which can make them fail anytime. It is important for a trader to possess at least 2 trading style since there is no way for us to keep making money from a single strategy in here. But surely, experience will tell the difference in here.

    6. Change the Plan for a Bigger Scale and More Depth

    A trading strategy that is simple will just make too many uncertainities and holes in our own trade later. We might need to know how we will use the strategy for the entry point and the exit point in here. We also need to control the capital we will be using in order to trade, which products we want to trade, how much money we will be risking in each trade and the number of trades we will set as a limit before we stop trading and wait for the result.

    7. Do a good check about our MONEY MANAGEMENT

    This is actually one of the most important thing a trader will need. Many traders can get a high accuracy rate in trading such as gaining money in 5 out of 8 trades. How about that 3 losses in here? If we can control a good money management, that 3 loss should be nothing and we are still in profit for overall of our trades. But the traders without them might loss more with that 3 losses than what they are gaining with 5 trades. That is a bad money management.

    8. Calculate the Swap or the Carry Cost Properly

    Some traders end up in loss even after the position is in profit because the swap is eating away all the profit. It will also be a factor we need to watch out if we want to become a good trader.

    9. Never Start Before Doing A Simulation!

    Many traders did not run a good test on what they will be doing in here and loss as the result. We need to test the strategy in here for a few times at least over 1-2 months to know the consistency of it. I believe 100 trades with the same condition will tell us the accuracy rate of the current strategy and we can run a good calculation of money management and prepare the sufficient money for it. It is the use of the Demo account to begin with in here anyway!

    10. Don't Put In All Your Eggs!

    Even if we got everything in our hands, never try to use all of our money in here! Sometimes we might just got a bad luck and loss everything too. The same as for the trade in here, if we put everything and loss everything then we might end out journey as a trader already. As long we possess a good strategy in here, we can keep getting small stacks of profit and that will be big in the future. The one that can't wait for that usually always destroy the whole trading account in the end with full losses!

    Never think that it is easy to become a trader!

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    Last edited by sekiryutei; 07-07-2017 at 07:00 PM.

  2. #631
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    Quote Originally Posted by Toyen View Post
    Hardwork is what every trader needs, this is what i know that will make traders to become the best they wish to become. In the better manner of trading, traders will have to be trading with the larger time frame, that is where traders could analyse the market with relaxed mind, the trader will do little efforts, this will still yield a positive results for the trader. Traders have to work always with management, this is likewise important.
    Well, I think there are most traders who are hard working, but are they really being hard working enough, in such a way that some traders are not that hard working in such a way that they don't work smart, because we need to work smart in such a way that we know the cause of our losses. and then put them to work. A lot of traders just learn and practice, but they don't have a journal, so clearly, they are not working hard enough.

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  3. #632
    Trader cutiekc's Avatar
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    After seeing all the reasons which has made various traders to loss their money. I have come to the conclusion that becoming a trader all should start with the mindset, in the sense that when we don't have the right mindset, then it will be a great problem for the trader, in the sense that having the right mindset makes other things more simple and easier to apply and then we will have an effective results.

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  4. #633
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    To become a trader you need to have a good skills and experience and this requires hard working from the trader to be able to get success and so the trader will be able to make good money from the market and so he will be able to enjoy trading all the time and will make consistent profits from the market and will be more relaxed always.

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  5. #634
    Trader J_C_Anderson's Avatar
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    Oct 2018
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    Anyone going to be a trader should keep in mind that it could take a lot of time to become a consistently profitable trader. Sometimes it could take a year or even more. Most of the novice traders expect to become professionals just in a few weeks, but expectation of fast profit a less likely to become real. In fact, the process of becoming a professional trader requires a lot of time and efforts. It is almost impossible to become a trader spending just a few hours per day.
    Trading is difficult since it is necessary to have enough experience and skills even to stay at breakeven. That is why most of traders either lose their initial investment capital or earn small amount of money but then also fail. That is why it would be much better to focus on skills and performance rather than on short-term profits.
    Another important point is that each trader needs initial investment capital that he could afford to lose, otherwise it would create substantial psychological pressure resulting in general underperformance of the trader. In other words, it is necessary to find the balance between an amount that is too small to earn sufficient profit and the amount that is too large that make trader to feel uncomfortable. It is also important to pay attention to financial goals and attitude to risk. Trader should choose between conservative and aggresive trading style depending on attitude to risk.

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  6. #635
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    Oct 2019
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    Good evening, yes, my brother, everything I mentioned is important to become a successful trader and the most important thing is continuous learning because Forex is renewed and every day a new and learning journey does not stop at all we discover everything new and away from risk and commitment to a good business plan

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