6. Know the different types of Trading
There are several types of Trading that can be used to start trading as a professional trader. Although each style is different in its characteristics, its objective will be the same: profit from changes in asset prices. The types of Trading differ basically in the trading frequency and the working times of the trading actions. The most optimal type will depend on various personal factors.
The most common types are:
- position trading: This type involves holding a position in long periods of time. These can be years, months or weeks. It is done with the idea of profiting from price variations over time.
- scalping: It is a kind of day trading but it opens and closes positions very quickly. These temporary periods can consist of a few minutes or seconds at most. The idea is to profit from small changes in the price of the asset.
- intraday trading: This type of trading sees you buy and sell assets with the idea of making quick profits from slight price changes in 1-day traded stocks. The investors who operate here are called day traders.
- swing trading: This trading consists of entering the operative actions just when it is believed that the direction of the market is going to change so that we can profit from the variations in the prices of the assets.
7. Be clear about which trading platform to choose
It is It is essential to choose the correct trading platform when operating as a professional trader. To do this, you must first know what your needs are. You have to see the platform you choose as an access to the market.
we tell you some aspects that you should take into account to choose the Trading platform that best suits you:
- Offer: the wide range of assets and products that exist to carry out operational actions will give you opportunities to expand your portfolio and modify it according to your strategy at the time you need.
- Simplicity: It must be a platform in which the necessary downloads can be carried out and that is adapted to each device. In addition, it must have a wide customization capacity that favors operations. It is essential to adapt to what you need, without extra complicated processes.
- Easy to use: It is very important to have easy use when browsing. Platforms must try to offer navigation with a high degree of usability. A relevant aspect will be the option to customize the operations area.
- demo account: It is very useful to practice in a real environment without taking risks of operations. In addition, this account will help you test your strategy, as soon as you gain the necessary knowledge. It is a good option to keep an eye on risks and find new markets.
- operability: Finding the features that help you optimize your uptime and the way you work is key. You have the option of discovering monitoring or charting instruments and functionalities, for example to manage your operations efficiently.
don’t forget that the trading platform you choose will help you trade as a professional trader, so you should choose it correctly taking into account its technical aspects. Take into account aspects such as how stable the platform is or the operating times they have, for example.
The moment you choose your type of Trading and the rest of the aspects, you should start carry out your plan corresponding, in which you will carry out on the platform you have chosen. The plan you make has to collect your operational actions that will make the strategy successful. Among the aspects that should be included are: your objectives, your investment and your motivation.
8. Estimate how to choose your broker
Working in this kind of markets with situations of variability can be quite a challenge for a professional trader, even if they have a lot of experience operating. We know that the risk in Trading is a fundamental part of it, but we are also aware that the Having an experienced broker can favor optimization in your Trading.
If you want to get started in this kind of markets, you must have a trusted broker. Some of the aspects that can help you choose it are the following:
- constant help: that he has good hours to serve you and different means to get in touch with him. This will be a good advantage when you start trading.
- have regulation: carry out the pertinent checks, finding out if your broker has the corresponding authorizations from the organizations that regulate this operation.
- Be a leader in the market: Choose a broker that after researching it, you verify that it has great innovative perspectives, works well and is a leader in this market.
- Good reputation track record: You must make sure that the broker you choose has a good track record and has the necessary operational experience to work optimally.
- Have good resources: The fact that your broker gives you the ability to access many resources should be paramount, since you will need certain tools and data to operate properly.
9. Put into practice what you have learned
Conduct a market study
It is key prior to establishing the strategy, correctly analyze the market. This analysis will help us to know how the markets will behave, thus creating the method to know their exit and entry points.
sayings methods are divided into two:
- fundamental analysis: It is based on an asset with an understandable value. The investor identifying the assets will be able to estimate and give a value to the potential market settlement. Investors will use macroeconomic information, adding current news, to find relevant occasions.
- Technical analysis: It is based on the fact that past events can guide us to know upcoming events. Investors have the option of studying the charts and using price-based indicators to build their strategy and make a system that capitalizes on repeating behavior and stock trends for profit.
Do not forget that the markets can become very variable and it is useless to try to fully anticipate their behavior. Of course, if we have a correct Trading strategy, we can be ready no matter what happens.
Create your trading strategy
Knowing how to manage risk correctly will be our daily bread to work as a professional trader. What do we understand by risk in Trading? Nothing more and nothing less than the probability that your actions will not lead to the end you expect. If you are a professional investor, it is not surprising that when operating with leverage you have losses greater than your initial investment.
Not winning is always a given in trading. Any investor who interferes in this market must be able to assume it. Of course, if we are able to carry out a risk strategy we can try to reduce the losses that may occur.
If prior to starting you make a risk investigation You will exercise greater control in your operational actions. It will also help you to make use of risk management instruments.
Sum of operational history
If you want to become a professional trader, you must trust and start operate on your own. Keep in mind that you can always hone your skills and do more research on the markets in order to optimize your strategy. If you want to be successful, find out which strategy is best suited to what you need, put it into action and continually review it.
If you want to increase your experience, it will not be necessary for you to operate in a real environment risking your money. Use a platform that has a demo account and operate quietly without any risk.
Update yourself at all times
If you want to perfect your trading strategy you should don’t miss the daily news and the studies carried out by experts in the field. Being up to date with what is happening will help you not to make mistakes, which you could have if you did not know certain news of interest.
Would you like to become a professional trader?
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