all the steps to follow!

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Many entrepreneurs today dream of become a trader to be financially freer. However, this approach is risky and the trader can lose all his money at the slightest mistake. It is therefore important to be well-versed in the field and to know all the stages of trading before launching.

What is trading?

a trader will invest in the stock market and open positions on the markets. As a trader, you will be selling and buying assets and profiting from the ongoing change in the markets. Furthermore, there are two types of traders that is important to differentiate. There is then the independent trader who carries out this operation for himself, he will have a variable income which will depend on his performance on the movement of the market. Second, there issalaried e-trader who works for a banking establishment, he has a fixed salary with bonuses according to the results he will achieve for this establishment.

Otherwise, the trader, regardless of type, has the main purpose of generate profit. However, the objectives may change depending on the organization in which you are trading. It generally has three roles in trading at certain organizations, starting with the management of a securities portfolio. The job of the trader is to maintain balance in a portfolio.

Then there is speculation which is the trader’s most exclusive role. The latter will take advantage of all market opportunities, and this, for each product line. Lastly, there is the heritage protection. The trader will then put in place strategies to protect the assets as well as possible. But in general, the trader aims to buy at the lowest, in order to sell at the highest.

What are the steps to follow to start trading?

It is important to follow certain steps in order to get into trading :

  • Choose a good broker;
  • Know how to manage your capital;
  • Focus on good products;
  • Train with the best.

Indeed, the broker, who is mainly called a broker, supports the trader in his mission. It is then important to choose a good broker in order to be well advised. You can also learn more about online trading. Moreover, it is recommended to try on demo platforms to be well prepared later. The trader must also know how to manage his capital, he must not commit more than 2% of his capital for each position. This will allow him to better anticipate possible losses.

Then, it is important for a trader to bet on the right products. You must also be able avoid dubious trading sites so as not to fall for scams. Otherwise, it is possible to be interested in cryptocurrencies or currencies in trading.

Finally, as a trader, you can train online, in specialized training platforms. You can find there tutorials and private lessons in order to’learn trading.

What are the types of traders?

You should know that there is different types of traders which have a different outcome for each over time. Thus, we find:

  • swing trader;
  • The scalping trader;
  • The day trader.

Swing trading represents one of the most common techniques in the world of trading. We generally use this type of trading to supplement our income. Here the trader is busy and uses a longer horizon approach. The swing trader is based on external elements or financial indicators that can have a positive impact. For successful swing trader, it is essential to have knowledge of economics in general.

The scalping trader is also another type of trading, this one is done on a very short horizon. That is to say that the trader will have to take a position for only a few minutes, or even a few seconds. It is also a technique widely used in the currency market. You have to put in place a good strategy and have great concentration to successful scalper trader.

As to day trader, it is done on the same day. Indeed, the trader will open and close buy positions over a day. Its price horizon should not exceed a few hours. Moreover, this one uses the technical analysis rather than the fundamental one and anticipates, with the graphs, the variation of the courses.

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