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There are many interesting topics right now. Many people are asking what exactly a trader is and why it seems hard to understand. I think it's easier than you think—just learn the right way.
Simply put, a trader is someone who buys things and sells them for a higher price. They can incur losses too. But what sets them apart from regular investors is that traders buy and sell very frequently. Some hold for just seconds or hours, not holding for years like typical investors.
Traders make money in three main ways: the easiest is buying low and selling high, or selling first and buying later, which sounds strange but is actually possible. They also use leverage, which multiplies their buying power—small amounts of money but able to trade a lot. But be careful because losses are multiplied too.
There are four types of traders. The first is Scalper, who enters and exits very quickly, within seconds, but it's very stressful and not recommended for beginners. The second is Day Trader, who trades within a single day without holding overnight, but needs to be free all day. If you have a regular job, this is hard. The third is Swing Trader, holding for 2-3 days up to a week. I recommend this most for beginners because you only need to check in the morning and evening. The last is Position Trader, holding for months or years—very patient.
The fact to know is that 72-89% of beginner traders end the year with losses. This statistic hasn't changed in 27 years. But what about the 11-26% who survive? What do they do differently? They set Stop Loss every time, have a trading plan beforehand, practice with fake money first, and don't rush.
Beginners who want to start should follow these steps: learn the basics first, read charts, understand what Stop Loss is. Then practice with virtual money until you get used to the system—no need to risk real money. Choose a platform with real licenses, like ASIC or FCA, not just unregulated apps.
When starting real trading, plan four things: what to trade, where to enter, how much you're willing to lose if things go wrong, and where to exit if things go right. Always set a Stop Loss. Don't forget. Start with small amounts—losing a little won't hurt. Gradually increase as you see good results.
I believe that trading is not a difficult profession, but it requires three things: knowledge, practice, and discipline. There are no shortcuts to becoming rich. Keep learning, always set Stop Loss, and keep a trading journal to see where you went wrong. A good trader isn't someone who never loses, but someone who loses little and makes big profits in the long run—that's the real difference.