These days, the word “trader” is becoming very popular. It’s often pronounced by those who have nothing to do with stock trading. In feature films, this profession is often associated with the ability to quickly hit a big jackpot and get rich. Perhaps, you are one of those willing to know whether it’s possible and how to make it come true. In this EXANTE broker review, we are going to get familiar with the profession and find out what traders do. You will learn everything required to become a trader.
Typical features of the profession
As the very word suggests, a trader has to do with trading. So, it’s a person who trades various assets. Basically, a trader is engaged in trading various financial instruments at various trading sites.
The financial instruments that a trader trades are very diverse. These can be underlying assets, for example, securities, precious metals, currency pairs, various indices, or derivatives, such as futures and options.
As you see, it’s a very simple principle of making. However, it’s simple to understand the general principle, which has nothing in common with trying to become a trader.
A trader buys an asset at a certain market price, expects it to grow, and sells the asset more expensively, having a difference in its value as his profit. The given speculative principle is common for all trading strategies. You can try this principle with the EXANTE brokerage company.
Traders: who are they?
To start with, we should note that traders can work privately. In other words, they can work for themselves. Alternatively, they can be officially employed in a financial organization, for example, a brokerage office or a hedge fund. Successful professional traders usually work in such organizations, where they are engaged in managing other people’s money.
Those traders who trade their own funds set the main goal to increase their capital. Among them, one can see many stock exchange enthusiasts who had to educate themselves on their own. By the way, self-educated traders can also be very successful. Many amateurs today boast decent profits. They even date to write their own books to teach novice traders. However, at the same time, a great number of people require education and practice to gain success in this field.
Besides this, traders differ in the way they trade. There are scalpers who open a large number of short-term deals and close them on the same trading day, making a profit from momentary price jumps.
There are intraday traders. They open fewer transactions than scalpers, but like them, they do not transfer these transactions to the next trading day.
Medium-term traders can hold a position open for several weeks or even months. Their trading schedule is not as busy as the above, but they need a more thorough approach to market analysis and forecasting.
A separate group is represented by investors. They are patient. These traders can keep a deal open from several months to several years. They are interested in large profits and often they use investing as a instrument not so much to increase but to preserve their already existing capital.
Is it easy to be a trader?
Well, the answer is negative and any trader who has been on the market for more than one year will tell you this. The profession of a trader requires constant improvement of their skills and self-education, strict discipline and self-organization. Besides this, daily traders have to face a serious nervous load due to the necessity to make difficult financial decisions, on which the safety of their deposit depends.
Besides this, the trader is required to be able to analyze the market situation and make accurate forecasts in order to conclude profitable transactions.
There’s a bitter fact that not everyone can succeed in stock trading. This profession requires a huge effort, a responsible approach, and emotional stability, which is confirmed by statistics, according to which, out of 100% of all who come to the stock exchange, only 5% of traders succeed, respectively the rest lose their money.
Therefore, answering the question, who is a trader, we can say that this is a hard-working person who makes money with his intellect. To succeed in this path, it is important to properly organize your training. A variety of training materials and books will help you to meet this objective.
Have a try with the EXANTE broker
In many regards, EXANTE appears to be a leading broker working on the stock market. It never breaks the SEC rules and offers up to 150,000 assets.