These days, the market is undergoing interesting changes. Most people see it as a crisis, but for traders, this is a good time to make money. The problem is that most people who want to start a trading career aren’t short of money, but they don’t know where to begin. Today, I want to explain simply what a trader is and how to start if you want to become one.

Simply put, a trader is someone who makes money by "buying low and selling high" in financial assets, whether it’s gold, currencies, stocks, or crypto. Imagine this: you go to a market and see a shirt priced at 100 baht, and you know you can sell it in a Facebook group for 200 baht. You buy it and resell it for a profit of 100 baht. Traders do exactly the same thing, just with gold or dollar currencies, and they do it through a mobile phone or computer—no need to stand in front of a shop anywhere.

What’s the difference between regular stock investors and traders? General investors (Investors) buy and hold for years, waiting for their assets to grow. Traders, on the other hand, buy and sell more frequently, holding for just a few hours or days, then selling to profit from the price difference. To compare, investors are like people planting mango trees, waiting three years to harvest, while traders are like people buying mangoes from the orchard and selling them at the market daily, making a profit each day.

An important fact is that, according to statistics from FINRA (the U.S. financial market regulator), 72% of day traders end the year with losses. I mention this not to scare you but to make you aware that if you want to start, you need to prepare well.

How do traders make money? Mostly from price differences, with three main methods. The first is buying low and selling high—this is the simplest. For example, if gold is priced at $4,600, you buy it, and when the price rises to $4,650, you sell and make a $50 profit.

The second method is selling first and buying later. Sounds strange, right? "How can I sell if I don’t have the asset yet?" It’s simple: imagine your friend has an iPhone. You borrow it and sell it for 30,000 baht. A week later, the price drops, so you buy a new one for 25,000 baht and return it to your friend. Your profit is the difference, 5,000 baht. In trading, this is easy—just press "Sell" on the app. No need to borrow the actual item; the system handles everything.

The third method is using leverage, which multiplies your profits (but also your losses). Leverage is like a "booster." For example, if you have 1,000 baht, normally you can buy assets worth 1,000 baht. But with 1:100 leverage, you control assets worth 100,000 baht. Your profit increases 100 times, but so does your risk of loss. It’s like driving a fast car—speeding is exciting, but a crash can be severe. You must use leverage wisely.

There are four main types of traders, categorized by how long they hold positions—from a few seconds to several months. No type is better than another; it depends on how much time you have and your preferred style.

**Scalper** opens and closes orders within seconds or minutes, making small profits multiple times a day—like a skewer seller making 2 baht per skewer but selling 500 skewers daily, earning 1,000 baht. But scalping is very stressful; decisions must be quick, mistakes are not allowed, so it’s not recommended for beginners.

**Day Trader** trades within a single day, closing all positions before the market closes—like a market vendor who buys in the morning and sells everything by evening, not taking goods home. The advantage is no overnight risk, but it requires all-day availability, which can be hard if you have a full-time job.

**Swing Trader** is what I recommend for beginners. They open positions and hold for 2-3 days up to 2-3 weeks. No need to stare at the screen all day—just check in the morning before work and in the evening. It’s like dropping a fishing line, setting conditions, and waiting for the fish to bite. This style suits people with a regular job who want extra income from trading without quitting their job.

**Position Trader** holds positions for weeks or months, focusing on the big picture rather than daily price fluctuations. It’s like buying land and waiting for long-term appreciation, not caring about daily price changes, only the overall trend.

The difference between traders and investors is that traders focus on frequent buying and selling to make short-term profits, while investors buy and hold long-term, expecting value to increase. Neither is better; they are just different approaches. If you have 1-2 hours a day, try swing trading. If you don’t want to bother, investing in mutual funds might be better. You can also split your money: one part for long-term investing, and the other for practicing trading. The key is: no matter which style you choose, don’t risk money needed for daily expenses.

For beginners wanting to become traders, here are five simple steps: learn the basics, practice with fake money, choose a trading app, plan your trades, and start trading with small amounts. Don’t skip steps because most failures aren’t due to market difficulty but rushing too fast.

First, learn the basics—no need to study extensively, just understand the main concepts: what can be traded (gold, currencies, forex, stocks, crypto), how to read price charts (green candles mean rising prices, red candles mean falling), what is Stop Loss (an automatic order to cut losses at a set point), and leverage (a multiplier that allows trading with less money but increases risk).

Second, practice trading with "demo" accounts. This is crucial—most good trading apps offer demo accounts with fake money, simulating real market conditions. It’s like a driving simulator before actual driving. Practice for at least 2-4 weeks before risking real money.

Third, choose a reliable trading platform. The platform is your "work tool." Pick one with proper licensing, such as regulated by ASIC (Australia) or FCA (UK). Avoid unlicensed apps. Good platforms are easy to use, have demo accounts, low fees, and helpful tools like analysis, charts, news, and indicators.

Fourth, plan your trades before executing. Don’t trade randomly. A simple plan involves answering four questions before opening each order: what to trade (e.g., gold or EUR/USD), entry point (e.g., buy when price hits this line), how much you’re willing to lose (set Stop Loss), and where to take profit (set Take Profit). The golden rule is risking no more than 1-2% of your total capital per trade. For example, with 10,000 baht, risking only 100-200 baht per trade.

Fifth, start trading with small amounts. After practicing confidently in demo, begin with real money you can afford to lose. Don’t invest a large sum immediately. Gradually increase your capital as you gain consistent results. Don’t rush to get rich quickly—fast money often leads to big losses.

The benefits of being a trader include being your own boss, trading anywhere and anytime, unlimited income potential, and earning from both rising and falling markets. The downside is that 70-90% of beginners lose money, experience stress from watching prices all day, and have no fixed salary. If a trade doesn’t go well, there’s no income that month. Continuous learning is essential—stop learning, stop earning. Overexposure to screens can also harm your health.

Based on data from over 8 million traders over 27 years (1998-2025), 74-89% of retail traders lose money. This figure has remained almost unchanged over the years. Only 11-26% survive by having a plan, setting Stop Loss, accepting losses as part of the business cost, practicing with fake money, and recording every trade to analyze mistakes. Successful traders aren’t those who never lose, but those who lose little and profit much over the long term.

In summary, becoming a trader isn’t difficult but requires three things: knowledge, practice, and discipline. There are no shortcuts or get-rich-quick formulas. Traders make money from price differences—buy low, sell high, or sell first and buy later. There are four types: Scalper, Day Trader, Swing Trader (recommended for beginners), and Position Trader. Always start with a demo account, practice for free, choose a licensed platform, keep it simple, and set Stop Loss every time. These are the key differences between traders and gamblers. Begin trading with small, manageable amounts you can afford to lose.

The best first step is to open a free demo account and try trading. No need to use real money yet—just see if you like it. If you enjoy it, continue learning. If not, there’s nothing to lose.