How To Become A Trader
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  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 06:00 PM.

  2. #2
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    Well said! It is true that we need all of them and most traders do not have them. That is why it is hard to see anyone can success in here!

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  3. #3
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    Quote Originally Posted by Selly View Post
    Well said! It is true that we need all of them and most traders do not have them. That is why it is hard to see anyone can success in here!
    Indeed, it seems like most traders always take things too lightly. That should not happen since even small mistake might make you bankrupt if there are any mistake in the progress for what i have been saying about. Learning will always be needed too and many did not do that at all when they need to trade which will make another problem.

    - - - Updated - - -

    Quote Originally Posted by Yul View Post
    Another high quality contest thread by Sekiryutei. The content is very satisfying! We can success if we can use them all.
    I think it will help to a certain part but if it will be a direct success then it might depend on the trader themselves. Some that still possess light knowledge only can't possibly success with only these factors. But certainly, they can take 1 step ahead after seeing this and they will know what they should be doing and arrange next.

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  4. #4
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    Quote Originally Posted by sekiryutei View Post
    I think it will help to a certain part but if it will be a direct success then it might depend on the trader themselves. Some that still possess light knowledge only can't possibly success with only these factors. But certainly, they can take 1 step ahead after seeing this and they will know what they should be doing and arrange next.
    What i believe here is for traders to be ready for all the things of the market, they might be caught in a manner they did not prepare for. This is why they are a trader, we all have to train ourselves and become the successful one that knows how the market is practically working all the time, this will increase the possibility of our success.

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  5. #5
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    Another high quality contest thread by Sekiryutei. The content is very satisfying! We can success if we can use them all.

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  6. #6
    Trader kagho's Avatar
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    to me point number 7 is the most important for any type of trader for we need a trading account for any trading type we choose to use but if we do not follow a good money management then we will risk a lot in our trading and just a few consecutive losses will lead us to end up without a trading account due to margin call

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  7. #7
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    Quote Originally Posted by kagho View Post
    to me point number 7 is the most important for any type of trader for we need a trading account for any trading type we choose to use but if we do not follow a good money management then we will risk a lot in our trading and just a few consecutive losses will lead us to end up without a trading account due to margin call
    become a trader not the point if you are a good trader this is the point and how to learn and how to handle the market and trades this is the point people do not know mostly actually it would be a better thing if you work on it and then you trade it very care full this is the best thing at all every trader do not do it they just want to earn but not a learn and then they leave this ...

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  8. #8
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    [lang=ar]i know about being a day trader it is a lot of fun and pressure in the same time , you should be aware that if you want to be a day trader then you should be experienced and you should know about the most important economic data that released every day as they move the market and you can benefit from this[/lang]

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  9. #9
    Trader ict2014's Avatar
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    Quote Originally Posted by AmrHesham View Post
    [lang=ar]i know about being a day trader it is a lot of fun and pressure in the same time , you should be aware that if you want to be a day trader then you should be experienced and you should know about the most important economic data that released every day as they move the market and you can benefit from this[/lang]
    guys everywhere pressure either in long trading or short trading. when a long trader trade are moving to negative site he remain under a pressure after that he is waiting as he has confidence. Main matter trader confidence that come from experience. This is all over the trader to follow high impact news data and gather power of psychology and analysis that aware the trade what site market might go which by a trader can keep trend and make good profit.

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  10. #10
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    Quote Originally Posted by AmrHesham View Post
    [lang=ar]i know about being a day trader it is a lot of fun and pressure in the same time , you should be aware that if you want to be a day trader then you should be experienced and you should know about the most important economic data that released every day as they move the market and you can benefit from this[/lang]
    SEE,if u want to become a trader you have to work hard day by day cause its not a normal thing and not easy and not for everyone its a professional business and who's success in this trade those had work very hard on this so try and try then become a success in this field so try to focus on their strategy and investment this is formula to become your trade good and profitable...

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