How to become a trader for a living

Hi everyone,

In this article I am going to give you some tips about how to become a trader for a living.Some new traders earn some fast money in the beginning and they think that trading is something easy.All of them fail in the long term run because trading is very difficult.First of all, if you want to be a professional trader you must learn how to trade and this is complicated.So, you should sit down and read. Many hours per day.You can trade in the market with two ways.Fundamental and Technical Analysis.Personally, I think fundamental analysis is more useful in stocks trading or if a trader take trades with very long expiry.So, for short term and intra day traders I believe that technical analysis is the most useful tool.

One thing you should know is that if you want to be a profesional and profitable in the long run you should forget the fast and easy profit.It’s better to have a small and steady profit every day than a huge profit the first day and a huge loss the next day.The second situation can destroy your account very fast because  you didn’t make the right money management, maybe you didn’t organize a solid and steady trading plan or finally maybe you don’t know when the odds are against you or with you.So, the best choice for you is to know how much money you are able to lose from the beginning.Before trading.Then you should chose your strategy.Which assets will you trade?Forex, Commodities, Stocks, Indices?When you choose the best for you, you should find the right trading strategy for your asset.Moreover, an important part of trading is money monegement.The are good traders who fail in the long run because of their poor money monegement.

Another important factor that separates a newbie from a professional is the psychology part.Many times newbies are following their emotions and they forget to look at the reality.A professional trader has strong discipline and doesn’t follow his emotions.He is following his trading plan, his money management rules and his technical analysis skills.He is not afraid of the market but he always respect it.He has also a trading routine and he is following it,too.He is trading the right time and only if there is a trading opportunity.He doesn’t chase the trades.He is waiting for the market to give him a trade opportunity.

Cheers,

Kostasze