But what does the profession of trader consist of?
Posted: Sun Jan 12, 2025 6:55 am
The profession of trading is mysterious. We tend to imagine that professional traders are able to predict the future and know how money will evolve.
Traders know which companies will see their stocks rise and which currencies will devalue. This profession is very often seen as a surefire way to get rich in a very short time.
Traders certainly demonstrate overseas chinese in canada data great analytical and observational skills , but their work is based on a system and iron discipline. Sometimes, traders meet to discuss their working methods and develop new, more efficient processes .
But in order to be able to develop his own working method, a trader must absolutely receive prior training .
He must acquire knowledge of financial markets and their rules. He must learn to identify opportunities and become familiar with the life cycle of positive operations.
Third, a trader must have a good broker . The broker is responsible for executing the trader's orders on the stock markets. A good broker must be fast, agree to submit to regular audits by recognized organizations, and charge reasonable fees.
Without a broker, the trader has no means of action.
What are the main characteristics of a professional trader?
For those who want to become traders, knowledge, even if it is essential, is not everything. You need to have a certain psychological profile. It is essential, even indispensable. A trading professional must be able to manage his emotional responses.
Throughout his career, a person whose job is to buy and sell stocks, currencies and even raw materials is constantly subjected to a high level of stress. Being able to manage this stress is a sine qua non condition to be able to practice this profession in the long term and obtain positive results.
What fundamental skills should a trading professional master?
The four keys to success for the professional trader are:
A comprehensive knowledge of economics and how markets work.
Knowing how to think in terms of probability. This notion challenges the myth of the professional trader who is supposed to predict the future. The trader's main function is to analyze the information he has and to develop a mathematical model of trends. These trends, combined with his personal risk assessment criteria, will serve as a basis for the trader to enable him to make decisions. What happens once the trader has identified an opportunity and analyzed the price evolution? There is necessarily a greater probability that a given scenario will occur than its opposite. The trader must therefore calculate the risks of failure of a given probability in order to be able to make a decision.
Traders know which companies will see their stocks rise and which currencies will devalue. This profession is very often seen as a surefire way to get rich in a very short time.
Traders certainly demonstrate overseas chinese in canada data great analytical and observational skills , but their work is based on a system and iron discipline. Sometimes, traders meet to discuss their working methods and develop new, more efficient processes .
But in order to be able to develop his own working method, a trader must absolutely receive prior training .
He must acquire knowledge of financial markets and their rules. He must learn to identify opportunities and become familiar with the life cycle of positive operations.
Third, a trader must have a good broker . The broker is responsible for executing the trader's orders on the stock markets. A good broker must be fast, agree to submit to regular audits by recognized organizations, and charge reasonable fees.
Without a broker, the trader has no means of action.
What are the main characteristics of a professional trader?
For those who want to become traders, knowledge, even if it is essential, is not everything. You need to have a certain psychological profile. It is essential, even indispensable. A trading professional must be able to manage his emotional responses.
Throughout his career, a person whose job is to buy and sell stocks, currencies and even raw materials is constantly subjected to a high level of stress. Being able to manage this stress is a sine qua non condition to be able to practice this profession in the long term and obtain positive results.
What fundamental skills should a trading professional master?
The four keys to success for the professional trader are:
A comprehensive knowledge of economics and how markets work.
Knowing how to think in terms of probability. This notion challenges the myth of the professional trader who is supposed to predict the future. The trader's main function is to analyze the information he has and to develop a mathematical model of trends. These trends, combined with his personal risk assessment criteria, will serve as a basis for the trader to enable him to make decisions. What happens once the trader has identified an opportunity and analyzed the price evolution? There is necessarily a greater probability that a given scenario will occur than its opposite. The trader must therefore calculate the risks of failure of a given probability in order to be able to make a decision.