I just noticed that many people want to start trading but don't know how to begin. The truth is, trading isn't as difficult as most people think. Simply put, it's about making money by buying low and selling high, whether it's gold, currencies, stocks, or crypto—like a market vendor who buys goods and sells them for a profit margin. That's all there is to it.

What most people confuse is the difference between a trader and an investor. Let me explain simply: an investor buys and holds for the long term, waiting for it to grow. A trader, on the other hand, trades more frequently, holding for just a few hours or days, then selling for a profit. To put it simply, an investor is like someone planting a mango tree, waiting three years to harvest, while a trader is like someone buying mangoes from the orchard and selling them at the market daily for a profit margin.

Honestly, statistics show that 72% of day traders end the year with losses. I'm not trying to scare you, but to let you know that if you want to start, you need to prepare well. There are three main ways traders make money: buy low and sell high, sell first and buy later (short selling), or use leverage to multiply profits. But beware, leverage can also multiply losses.

There are four types of traders: scalpers who enter and exit within seconds to minutes; scalpers make small profits multiple times a day but are very stressful—not recommended for beginners. Day traders trade within a single day, not holding overnight; the advantage is not worrying about what happens tomorrow, but they need to be free all day. Swing traders hold for 2-3 days up to 2-3 weeks, just checking in the morning before work and in the evening—this is the most recommended for beginners and suitable for those with a regular job. Position traders hold for weeks or months, looking at the big picture, ignoring daily ups and downs.

If you want to become a trader, you must learn the basics first—at least understand what can be traded, how to read price charts, what is Stop Loss, and what is Leverage. Most importantly, practice trading with fake money first. Good trading apps offer demo accounts for practice; prices are real, everything is authentic, just without risking real money—like a driving simulator. Crash as many times as you need; practice until you’re confident before trading with real money.

Choosing a good trading app is also important. Find one with proper licensing, easy to use, offering a demo account, no commission fees, and good analysis tools. For example, MiTrade, regulated by ASIC, charges no commissions, offers Negative Balance Protection to prevent owing more than your funds, and provides a free demo with $50,000 virtual dollars.

Before every trade, plan ahead by answering four questions: what to trade, where to enter, how much you’re willing to lose if wrong (set Stop Loss), and where to take profit if right (set Take Profit). The golden rule is to risk no more than 1-2% of your total capital per trade. Practice with demo until confident, then start real trading. But don’t risk a large amount right away; start with small funds you can afford to lose, and gradually increase your capital as you see consistent results.

The advantage of being a trader is that you are your own boss, with unlimited income potential. You can start with a small amount and profit from both rising and falling markets. The downside is that 70-90% of beginners lose money, experience stress, have no steady salary, and must keep learning constantly. Skilled traders are not those who never lose, but those who lose little and make big profits over the long term.

In summary, becoming a trader isn’t hard, but it requires three things: knowledge, practice, and discipline. There’s no shortcut or get-rich-quick formula. The best first step is to open a free demo account and try trading. No need to use real money at first—just see if you like it. If you do, continue learning; if not, you haven’t lost anything.