Learn to be a Good Trader | Routines and Tricks

How about to Learn to be a Good Trader, but the idea of having to study a great career puts you off? Do not worry.

It is true that traders who work in prestigious banks, especially in the US, have graduated from universities or business schools with five or even six years of higher education. However, the doors of trading are not necessarily closed to aspiring traders who have not studied.

In fact, if finding a job as a trader is impossible without a diploma, there is a path that is still accessible to everyone: online trading from home.

Before examining in detail how you can become a CFD trader, let’s first look at what a retail trader, online trader or independent trader is, in concrete terms, a private investor who operates on the Internet from home.

If you want to Learn to be a Good Trader, we can give a simple explanation of what the job of a trader consists of, let’s say that:

Definition of Trader
▶ A trader buys and sells financial assets (stocks, bonds, currencies, options, etc.) while monitoring the fluctuations in stock market prices in real time, the main objective being the generation of profits ◀

The trader, private or salaried, can specialize in certain assets or in certain stock markets. Therefore, a trader can be: trader of binary options, commodities, high frequency or scalper, trader of Forex, oil or day trader, among many others.

➣ The Forex trader, for example, invests in the currency market, also called the Forex market, acronym for Foreign Exchange

➣ A high frequency trader, or scalping, on the other hand, will open a large number of positions that remain open for only a few seconds to a few minutes.

Types of Traders
We can distinguish two large groups of traders, the independent online traders and the salaried traders, that is, they work on behalf of a third party.

1️⃣ The first one is mainly a trader on his own account, that is, he invests his own savings. Since the rise of the Internet, independent traders at home are more and more numerous, since the goal of online trading is for everyone to have access to the markets.

2️⃣ The salaried trader is more of a trader on behalf of third parties: he invests the money of his employer’s clients. The companies that employ traders are mostly financial institutions, such as banks or investment funds, but they can also be private companies, such as Repsol, for example.

The rise of the Internet has made the stock market accessible to the general public, demystifying complex stock markets and offering flexible and accessible trading conditions.

To invest in the stock market on the web, all you need is to learn to be a Good Trader but also the following equipment:

• An internet connection
• A computer, a tablet or a smartphone
• A stock broker
• A trading account
• A trading platform
• As you can see with the naked eye, the first two components of a trader’s basic equipment are quite common today. Most likely, you already have an Internet connection and have a computer, landline or laptop, a tablet or a simple mobile phone.

Also, you need to have a trading account with a stock broker. There are different types of accounts depending on your investor profile, and it is simply similar to a bank account.

↳ The broker is the market intermediary that allows you to open a trading account and place your orders. The first step to being a good trader is choosing a serious and regulated broker, such as IQ Option.

Finally, in order to perform your job as a trader, you need a trading platform, which is nothing other than the software that will allow you to open and close your positions or analyze the market on a chart. Free, robust and intuitive, the MetaTrader platform is the most widely used in the world.

It is designed for both beginners and more experienced traders and is suitable for all work environments, desktop and mobile (Mac, Windows, Android, iPhone, etc.). Its different versions – MT4, MT5, the Supreme Edition plugin, WebTrader – allow it to be adapted to all trader profiles.

As the online trader is accessible to everyone, Learning to be a Good Trader at home does not require a diploma or certificate.

Of course, to be successful and generate profits, you need to be well trained in the stock market beforehand, and have a minimum of trading knowledge and technical skills. For this it is essential that you study as much as possible about the markets, through articles and tutorials, free online courses or our YouTube channel.

Therefore, the main requirements to Learn to be a Good Trader from home are related to motivation.

Easy money in the stock market is a myth and becoming a trader requires a lot of work, first to learn the trade but also later, in the daily analysis of the market. Much like a capital investment, being a trader involves a large investment in time.

But more specifically, becoming a trader requires nerves of steel. You may not have known this before starting in the world of the stock market, but trading is a very stressful activity: fear of losing capital, frustration, euphoria of profits, the desire to “get back on track”, all these emotions that we must know how to handle on a daily basis.

On the other hand, in the event that you want to work as a salaried financial trader for a bank or a large company, long studies are inevitable.

To be a trader in Singapore, the university degrees that are usually studied are:

• Economy
• Business Administration and Management (ADE)
• Finance
• Maths

Sometimes, to work as a trader it will be necessary to delve deeper into the knowledge and carry out one of the following studies.

• Postgraduate Banking
• Postgraduate Financial Markets
• Master in Finance
• Master in Stock Market and Markets, etc.
• And in an international context, this finance training requires a perfect command of English.

However, the training necessary to become a good CFD trader is accessible to everyone on the Internet and even free of charge. In fact, there are free and paid trading training courses on the web, in various formats such as videos, articles, webinars, etc.

If you are thinking of being a trader and you still do not have all the necessary knowledge, start with our free Super Trader course!

You can always look more into the finance situation in the world by visiting the IFC, which is International Finance Corporation.

Although we know that a bank trader in Singapore earns an average salary of € 40,000 per year excluding premiums, the income of independent traders varies greatly from one to another and it is impossible to offer a representative average. However, it is one of the most frequently asked questions in forums dedicated to trading.

➤ The salary of traders from home varies in the first place according to the amount of capital they invest.

Logically, it can be known that a trader with a small base capital of 200 euros, as a rule, will obtain less profit than an investment of several tens of thousands of euros. However, when you start to trade in the stock market it is preferable to do it with moderate amounts.

➤ The income of traders is also a function of their level and assiduity.

In fact, by definition, a trader without a diploma can have very good knowledge and skills. And a trader who works from home and has a financial background is likely to generate higher income logically than an individual trader who is completely new to the stock market.

In the same way, a full-time home trader should logically generate higher income than a freelance trader who would work occasionally as a complement to another professional activity.

Being a home trader is a highly coveted activity, even by highly qualified investors. In fact, it offers many advantages.

✅ First of all, like any independent activity, trading allows you to be your own boss and not have to answer to anyone. The CFD trader at home is also free to define his working hours, unlike a salaried job.

However, for this it is important to choose the style of trading and the markets in which you prefer to invest based on the hours you want to work: in fact, while the forex market is continuously trading, the other markets require that it be taken into account the opening and closing hours of the different stock exchanges.

✅ Another advantage is that learning to trade, like any new learning experience, gives you a deep sense of satisfaction and even pride. If you win, this feeling is multiplied by ten and really increases your self-esteem.

However, not everything is rosy for the independent trader, and there are also downsides to this activity that should not be denied.

❌ First of all, there is the risk of losses that weighs on your shoulders.

In addition to what this means economically, since large amounts can be lost depending on the amount of capital invested or the leverage used, the losses can have an impact on the psychology of the trader. If they are large, or recurring, they can really demoralize the trader.

❌ In addition, as often happens when one is independent, the home trader is isolated. If this is exactly what you are looking for, it can be difficult for some people to bear.

We have already seen all the necessary steps to follow to become a trader, but we still need to answer the last question, how to become a good trader? It is essential to create productive routines.

First of all, a routine is a good thing despite the term’s negative connotation. Routines consist of a series of habits that save time and effort.

Did you know that people who don’t have to choose what they eat for breakfast are generally less tired in the afternoon? The routines are there to keep you from constantly reconsidering what you only need to consider once. The reality is that making decisions is hard work on your brain. Remember how exhausting college exams were?

Good results come if you Learn to be a Good Trader and from optimizing performance and conserving resources. This applies to both life and trading.

➤ What is the first thing a professional Forex trader should do in the morning? Well, you should start your day right, be dynamic, eat a healthy breakfast, and go to work.

Most professional traders start the day early ⏰. Years of human evolution have linked our biorhythms with the movement of the sun and following it will have a positive effect on both your health and your trading method.

➤ Speaking of health, your brain, essential to operate in the markets for its analytical and decision-making capabilities, requires a lot of oxygen. So make exercise a regular part of your morning routine. Do whatever it takes to get your blood circulating. This could be jogging, biking, push-ups, or sit-ups.

In addition to reducing the risk of heart attack, a regular five-minute workout greatly improves blood circulation and oxygen supply, which improves brain activity.

In the life of a Forex trader, the morning routine is essential to maintain a professional tone for the rest of the day.

In the markets, traders are more easily defined by the periods during which they keep their trading positions open.

• Position trading means long term, with positions generally open for years. This means analyzing market trends in daily time intervals.
• Swing traders have their positions open for days and weeks. The daily and four-hour time frames are his favorites. In some rare cases, a one-hour period is used for a more thorough study of the graph, but that is not the primary decision framework.
• Day traders usually open positions within the same day. They are not used to keeping their positions open unsupervised for long periods of time as it is too risky. They are generally called intraday traders.
• Finally, we have the “Scalpers”. This type of trader specializes in very short-term operations. They generally use a fifteen minute time frame, which increases as they go. Why is choosing the correct time frame so important? Because it often influences the interpretation of trends in your charts.

How do professional traders limit their exposure to risk? Learn to be a Good Trader First, by having a limited group of markets to follow. Second, know exactly what they are looking for in a graph.

In summary, to increase your level of trading, follow these initial steps:

➜ Decide what type of trader you are.

➜ Identify the markets that interest you.

➜ Understand the strategy you are using what you are looking for

Most traders prefer to open their positions for short periods rather than long periods. There are generally fewer signals to interpret, less complex graphics on the screen, and less noise on the market. This often leads to a better probability of trades.

The irony is that most people start trading hoping to have more free time for themselves. Instead, they often end up tied to their screen for 40 hours a week, obsessed with their positions.

It is not the real life of traders. In fact, it is not a life at all. Professionals let the market do the work, while using rest and recovery periods to optimize performance later. You need to Learn to be a Good Trader before you can make profit on online trading before your dreams can come true. You need:

➤ A long-term trader begins by adjusting his positions. This involves checking the performance of open positions. Depending on the evolution of the market overnight, a trader can adjust the stop-loss or take-profit of their positions. If you carry out operations that last several days, it does not make sense to monitor the markets for more than four hours, or even more than once a day.

If trades were closed overnight, a professional trader will document them in a trading journal, reflecting profit or loss.

➤ Keeping track of trades distinguishes beginning traders from seasoned professionals. By doing so, it is easier for a trader to evaluate his overall performance and his strategy. It also allows you to get an idea of ​​the big picture in terms of profit and loss. Viewing transactions in batches, rather than individual trades, is a much better way to evaluate performance and strategy.

In any case, the lesson here is to learn when the market really requires us to trade. When it is not necessary, it is better for traders to stay away from the markets.

Professional traders are very good at adapting to these parameters, they never chase the market. Once the trading session is over they withdraw, unless they are actively interacting in the markets. Make sure to develop this habit too.

In short, the life of a forex trader is made up of routines designed to reinforce productive habits that optimize performance and conserve resources. Keep in mind the following points:

✔️ A good trader knows his trading style, the markets and does not waste time analyzing too much.

✔️ A professional CFD trader keeps a physical or digital (but not mental) record of his performance and considers only his long-term weighted results.

✔️ A professional trader knows when to withdraw from the market and let his strategy do the work.

✔️ Finally, a good stock trader does not let his profession invade his life. They operate to maintain their lives. They do not live to control their operations.