What is Trader? What types of Traders are there and how to become a professional Trader?

 Trader – a term that is probably no stranger to those who have been involved in investing in financial markets such as stocks, stocks, forex , gold, silver or most recently Cryptocurrency ( cryptocurrency ). , cryptocurrency or digital currency). But also many newcomers to the market do not understand the concept of Trader and what types of traders or need to learn to become a professional Trader (Pro) ? This article Virtual currency blog will share with you from A - Z.

What is Trader?

In the financial market, a Trader is an individual who makes transactions to buy/sell financial products such as currency pairs on the forex market, securities, indices, gold, silver, cryptocurrency, .. under on behalf of myself or on behalf of another organization/individual. When it comes to Trader, it is referring to short-term speculation and seeking profit through price differences, as opposed to the term Investor,  who is someone who trades in a longer time frame. 

What is Trader?

Currently, many people, especially young people, choose Trader as their job. The job of a Trader requires high pressure, requires a lot of knowledge and experience, but in return is the ability to get high profits and bring financial freedom.

What types of Traders are there?

There are many  different types of Traders , but I can list some of the most popular as follows:

1. Day Trader – Day Trader

A day trader is someone who trades financial products with a tendency to buy/sell and close orders on the same day, before the market closes. Depending on the trading method, day traders can enter several orders to hundreds of orders per day.

2. Floor Trader – Trader on the floor

Floor Traders are members of a stock or commodity exchange and usually trade on the floor with their own account. Floor Traders often have to follow the same rules as floor specialists, who trade on behalf of others. If you want to be a floor trader, you must follow the process and have the required qualifications.

3. High Frequency Trader – HFT Trader

This is a famous word recently. HFT Trader mostly uses algorithms and trades with high speed and large trading volume in order to eat very small profit and loss difference, but type many orders in 1 day and ultimately make big profits. This strategy typically aims for a much higher return/risk ratio than the classic buy and hold tactics. These HFT Traders often play an important role in creating flash crashes – rapid price crashes – in the recent market.

4. Rogue Trader – Fake Trader

Rogue Traders are usually traders who hire and place orders on behalf of their employer (under a certain term of work) but place orders beyond their authority. This word Rogue Trader is used extensively in the financial markets, where many Rogue Traders have made exceptionally large trades without the consent of their company.

There are also other types of Trader such as Stock Trader of stock people, or classified as Day Trader, Swing Trader, Position Trader... depending on the time of holding the order.

No matter what type of trader you are, remember, our goal is to manage risks very closely and earn long-term profits in the market.

How to become a professional Trader?

Becoming a professional Trader (PRO) and success is the desire of many traders in the financial markets. To become a successful Trader, traders need to note some points as follows:

1. Have the right mindset

When starting to become a Trader , traders will have to face many new elements of this profession. Trading in the financial markets has never been an easy task. Some statistics show that the number of traders who fail in the financial market ranges from 85-95%, which means the success rate is quite small.

Some of the right mindsets in becoming a Trader are:

• Trading in financial markets is not a get-rich-quick way
• There is no method that guarantees 100% success when investing in the financial markets.
• To trade successfully, Traders must have a strict and specific trading plan, and especially must strictly adhere to the trading plan.
• Be very patient because a Trader's success will come in the long run

2. Have an efficient trading system

Any Trader when trading on financial markets must have an effective trading system, proven over time. This trading system should help the Trader identify several important elements of a trading plan, including

Professional trader

• How to determine the market trend to determine the current state of the market (uptrend, downtrend or sideways)
• How to determine the specific entry point of the market?
• How to specifically determine the stop loss of an order
• How to specifically determine the take profit point of an order.

Having a trading system helps Traders limit the impact of emotions on trading, ensuring the objectivity of investment.

3. Have a strict capital management rule

Investing in the financial markets requires investment capital. Protection and strict investment management is a prerequisite for Trader 's success . In his capital management rules, Traders need to clearly define some points

• Order volume per market order
• Acceptable level of risk of each transaction (advisors should only be from 1-3%)
• Acceptable level of risk for each trading day, each trading week, each trading month, ..

Epilogue

Above is the article “ What is a Trader? What types of Traders are there and how to become a professional Trader ” hopes to bring readers the most useful knowledge. Trader is not an easy profession. To become a professional trader and make money from the financial markets, especially cryptocurrencies, you need time and perseverance to learn more knowledge as well as practice, even spending a lot of money. money. Good luck.