A trader is an expert in working with securities and other instruments in the financial markets, which acts on its own initiative, in its own interests and seeks to profit from the change in the value of these instruments. Traders work in the stock market and in the over-the-counter markets, including the Forex market.
To trade in financial markets, a trader needs a computer, a tablet or a mobile device with Internet access, an agreement with a broker or forex dealer, as well as software for making transactions.
How to become a trader on the stock exchange.
Only 20-30 years ago, in order to become a trader, it was necessary to acquire a place on the stock exchange, make a significant deposit to start trading, sign a bunch of documents and follow the strict rules of the exchange, including capital adequacy. At that time, the cost of starting the exchange trade as a trader could be measured in tens of thousands of dollars.
With the development of Internet trading, the need to purchase a place on the stock exchange, the availability of a trade license, and indeed any certificates, has gradually disappeared. Of course, and now you can go through all these procedures to become a direct participant in exchange trades, but most people with small capital prefer to act through licensed brokers.
How, for example, to become an exchange trader in Russia? The bulk of exchange trades in Russia is concentrated on the Moscow stock exchange. In order to become a trader it is necessary to conclude an agreement with one of the brokers registered on the exchange and having the right to open accounts for individuals. At the same time, you should consider with what tools you plan to work: stocks, bonds, currency pairs, futures, options or precious metals. Having concluded the contract with the broker, it is necessary to make at least the minimum amount to your trading account, which will serve as a deposit. Then you need to install specialized software (usually a QUIK trading system). In this terminal, access is provided not only to trading instruments on the Moscow stock exchange, but also to other sites, including foreign ones.
What if you want to limit the markets on which you will trade, for example, to become a trader only in the stock market? To do this, you must select a broker that works exclusively on this segment or specify the necessary restrictions in the contract.
How to become a trader in Forex
The scheme is similar to how to become an exchange trader, but there are significant differences in instruments of trade. For example, in the case of exchange trading, you become a real owner of a stock or currency when buying the appropriate instrument, and when trading on Forex this does not happen – the trade goes on the difference in price. Also, trading with a leverage is not available on the exchange market.
In the rest you also need to conclude an agreement with a forex dealer, install specialized software and make the necessary minimum amount of funds to a trading account. The instruments that can be traded differ, but in general they are set for most forex brokers. If desired, you can limit your trading to certain segments of the market, for example, only currency. Such restrictions must be negotiated with a forex dealer.
How to become a trader from scratch
How to become a trader in Russia from scratch, if you do not know anything at all? First of all, you need to understand a little bit what the financial market in general, and the Forex market in particular. If there is a clear meaningful desire to become a trader in the financial market, it is necessary to pass at least basic training in specialized schools of traders. Such in Russia is at large forex-dealers. Basic training is usually free. If you do not have the possibility of full-time education (which is desirable), then you can go online.
If, after passing the initial training, you want to become a professional trader, then besides the desire you will also need time and perseverance. Professional traders receive the basic earnings from the trade process. However, do not rush. Before making a trade in financial markets, one’s profession should not only study what the financial market is, methods of analyzing the market, the patterns of price behavior, but also spend a lot of time on practice. In the process of working out these or those strategies it will be necessary to check them both in historical retrospect and in real time. In passing, it will be necessary to study historical data on the behavior of the price of a particular instrument in one or another typical, repetitive situation, to keep a statistical account of the price behavior, its reaction to certain events. In the end, this will allow you to form your trading system. And only after that you can think about professional trade.
If you want to become a professional trader in a financial company or an investment bank, the requirements will be even tougher. Without the experience of trading and concrete results you can not do.
How do they become traders?
In most cases, the desire to earn leads to financial markets of people who are not willing to put up with the current state of things, including their material condition. Many entrepreneurs from real business who can not realize themselves in the Russian context view financial markets as an alternative way to earn money.
It is best to trade in people balanced and judicious, but at the same time ready to take risks. It is not uncommon when success in trading in financial markets comes to women who are less likely to react emotionally to financial losses, nor do they fall into euphoria in case of successful trading.
Those traders who are ready to turn off emotions, wait patiently for a successful transaction and its timely completion, successfully deal with successful and unsuccessful deals, allocate success components and correct mistakes, act on the template and change it only when necessary.
Luck is also a component of success, but at the same time, along with experience, it must be transformed into professional intuition. And this is possible only after a considerable time, as a rule, for several years.