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.