Right now, I see more people becoming interested in what a trader really is because everyone sees the market swinging and thinks this might be an opportunity to make money. But the problem is most don’t know where to start.

Simply put, a trader is someone who makes money by buying low and selling high. Financial products like gold, currencies, or cryptocurrencies are like going to a market stall, seeing an item priced at 100 baht, and knowing you can resell it for 200 baht. So, you buy and resell for a profit of 100 baht. The same thing applies, just changing to gold or currency, and doing it via mobile instead of standing in front of a shop.

But unlike natural investors who buy and hold long-term, traders buy and sell much more frequently. They might hold for just a few hours or days and then sell to take profit. To compare, a regular customer is like planting a mango tree and waiting 3 years to harvest, but a trader is like buying mangoes from the orchard and selling them at the market every day, earning the margin.

An interesting fact is that, according to financial regulatory agency statistics, 72% of day traders end the year with losses. I’m not saying this to scare you, but to make you aware that if you want to try, you need to prepare well.

There are 3 main ways traders make money. The first is buying low and selling high. For example, gold at $4,600, bought, then when it rises to $4,650, you sell for a $50 profit.

The second is short selling, selling first and buying later. Sounds strange, right? But it’s like borrowing something from a friend to sell, then when the price drops, buying it back. The difference is your profit. In trading systems, everything is managed for you, so you don’t need to actually borrow anything from anyone.

The third is using leverage as a multiplier. Suppose you have 1,000 baht. Normally, you can buy 1,000 baht worth of assets. But with 1:100 leverage, you can control 100,000 baht. Your profit increases 100 times, but so does your risk of loss. It’s like driving fast—fast speeds can be exciting, but if you crash, it’s serious.

There are 4 main types of traders based on how long they hold positions. Scalpers enter and exit quickly, within seconds to minutes. Like someone selling grilled skewers, making small profits but doing many trades, which is very stressful and not recommended for beginners.

Day traders trade within the same day, not holding overnight. Like a market vendor who buys in the morning and sells everything by evening. The advantage is you don’t have to worry about tomorrow’s price, but you need to be free all day, which is hard if you have a full-time job.

Swing traders are what I recommend for beginners. They hold for 2-3 days up to 2-3 weeks, checking prices in the morning before work and in the evening after work. It’s like dropping a fishing line—no need to watch all the time. This suits people with a regular job who want extra income.

Position traders hold for weeks or months, looking at the big picture, ignoring daily fluctuations. Like buying land and waiting for appreciation.

The key point is, traders focus on frequent buying and selling to make short-term profits, while natural investors buy and hold long-term, waiting for value to grow. Neither is better—just different approaches.

If you have 1-2 hours a day, try swing trading. If you don’t want to bother, long-term investing is better. If you want to try both, split your money into two portions.

For beginners wanting to become traders, how do you start? Here are 5 simple steps: learn the basics, practice with fake money, choose a trading app, plan your trades, and then start small with real money.

First, learn the basics—don’t overcomplicate. Just understand what can be traded, how to read price charts, what is Stop Loss, and what is Leverage.

Second, practice trading with fake money. This is the most important step, but most people skip it. Good trading apps offer demo accounts with virtual funds. Prices are real, everything is realistic, just without risking actual money. It’s like a driving simulator before driving a real car. Practice demo trading for at least 2-4 weeks.

Third, choose a trustworthy trading app. It must have a real license, be easy to use, offer a demo account, 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 exit if I go right? The golden rule is to risk no more than 1-2% of your total capital per trade.

Fifth, start trading with small real money. After practicing with demo and gaining confidence, begin with a small amount you can afford to lose. Don’t risk a large sum right away. Gradually increase your capital as you gain experience and see good results.

From 27 years of data, 74-89% of traders lose money, but the remaining 11-26% succeed. They do different things—have a plan, follow it, set Stop Loss every time. Accept that losses are normal. Practice with fake money first, and keep a record of every trade.

Most importantly, a skilled trader isn’t someone who never loses, but someone who loses little and makes big profits over the long run.

Being a trader isn’t hard, but it requires 3 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 4 types. For beginners, I recommend swing trading, always start with a demo account, set Stop Loss every time, and begin trading with small, manageable funds that won’t cause hardship.