A friend once asked me what a trader is, why some people are so skilled at it, and why others lose all their money in just three months. I think it's simple—it's about how well you know yourself and the market.

Let's first understand what a trader really is. It's not complicated at all. Simply put, it's someone who buys and sells to make a profit. Instead of buying clothes at a market stall, a real trader trades gold, currencies, stocks, or crypto through an app—no need to stand in front of a shop.

So, how is a trader different from a regular investor? An investor naturally buys and holds for a long time, waiting for the value to grow. A trader, on the other hand, trades much more frequently—sometimes just for hours, sometimes for a few days—taking advantage of price differences and then exiting. To put it simply, an investor owns a farm, waiting for mangoes to ripen, while a trader buys mangoes from the farm to sell at the market day by day.

The statistics I've seen consistently show that about 72-89% of traders end up losing money by the end of the year. I'm not saying this to scare you, but to let you know that if you want to start, you need to prepare well—not just force your way in.

Why can traders make money? There are three main ways: buying low and selling high—this is the simplest. For example, with gold, buy at $4,600 and sell at $4,650 for a $50 profit—done.

The second method is called short selling. Sounds strange, right? You haven't even sold anything yet, how can you sell? Imagine this: you borrow an iPhone from a friend, sell it for 30,000 baht, and next week, the price drops. You buy a new one for 25,000 baht and return it, pocketing the difference as profit. In trading, this is very easy—just press the sell button, and the system handles everything.

The third method is leverage. Think of it as a multiplier. If you have 1,000 baht, normally you can buy 1,000 baht worth of assets. But with 1:100 leverage, you control 100,000 baht. Your profits can increase a hundredfold, but so can your losses. It's like driving fast—really fast—but if you crash, it hurts a lot.

Regarding types of traders, there are four: scalpers—opening and closing positions in seconds, doing dozens of trades a day; day traders—opening in the morning and closing in the evening, not holding overnight; swing traders—holding for 2-3 days up to 2-3 weeks, suitable for beginners because they don’t need to stare at the screen all day—just check in the morning before work and in the evening; position traders—holding for weeks or even months, focusing on the big picture and ignoring daily ups and downs.

For beginners wanting to become traders, I have five steps. First, learn the basics—don't need to go deep, just understand what markets are tradable, how to read charts, what stop loss is, what leverage is. Second, practice trading with a demo account—most good apps offer one. The prices are real market prices, everything is realistic, just without risking real money. Practice for at least 2-4 weeks before trading with real money.

Third, choose a trustworthy app—must have a real license, be user-friendly, offer a demo, not charge commissions, and have analysis tools. Fourth, plan your trades—don't trade impulsively. Answer four questions: What will I trade? Where will I enter? How much am I willing to lose if I go wrong? Where will I take profit if I go right? The golden rule is to risk no more than 1-2% of your capital per trade.

Fifth, start trading with small amounts that you can afford to lose without stress. Gradually increase your capital as you gain experience. The truth is, a skilled trader isn't someone who never loses, but someone who loses little and profits much over the long term.

Want to know why those who survive with a 11-26% loss are successful? They have a plan and follow it—setting stop losses every time, accepting losses as normal, practicing with fake money first, not jumping into the water before learning to swim, and recording every trade to see where they went wrong.

In summary, a trader is someone who profits from price differences—buy low, sell high—or sells first and buys later. It’s not difficult, but it requires three things: knowledge, practice, and discipline. There are no shortcuts or get-rich-quick formulas. The best first step is to open a free demo account, try trading without real money, see if you like it. If you do, keep learning; if not, you haven't lost anything.