Let's understand what a "trader" really is and why they say it's easy but actually very difficult.



A trader is not something mysterious; it's simply someone who makes money by buying and selling various assets, such as gold, currencies, or cryptocurrencies. Buy low, sell high, and profit from the difference. Do you understand? It's like buying clothes at a market and reselling them to friends at a higher price. The only difference is that the middleman shifts from clothing to financial assets.

What sets traders apart from regular investors is that investors buy and hold for a long time, waiting for the value to grow. Traders, on the other hand, focus on frequent buying and selling to capture short-term profits. Some may hold for just a few hours before selling.

The real fact to know is that, according to financial regulatory agencies' statistics, 70-90% of beginner traders end the year with losses. This figure hasn't changed much over the past 27 years, which tells us that trading requires serious learning—not just investing and hoping to get rich.

Traders make money in three ways. The first is buying low and selling high—straightforward. For example, gold at $4,600, bought, then when it rises to $4,650, sold for a $50 profit. The second way is short selling, which sounds strange but is systematized and managed. The third is using leverage or multipliers—borrowing small amounts of money to control larger positions. But this is very risky; losses can also multiply.

There are four types of traders based on how long they hold positions: scalpers, who enter and exit within seconds to minutes, like someone selling grilled skewers, making small profits many times—this is not recommended for beginners. Day traders trade within a single day without overnight positions; they need to be free all day. Swing traders hold for 2-3 days up to 2-3 weeks—suitable for people with regular jobs, like checking in the morning before work and again in the evening. Position traders hold for weeks or months, focusing on the big picture without worrying about daily fluctuations.

If you want to start trading seriously, follow these steps: First, learn the basics—how to read price charts, what is Stop Loss, what is Leverage. No need to study too much, just the fundamentals. Second, practice with a demo account using fake money. Good platforms offer this. Practice until confident. Third, choose a licensed platform with transparent fees and user-friendly interface. Fourth, plan your trades: answer four questions—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. Fifth, start small, risking only what you can afford to lose.

Trading has pros and cons. The advantage is being your own boss, with unlimited income potential, making money whether the market goes up or down. The downside is the risk of losses, stress, no fixed salary, and the need for continuous learning.

The most important point is to always set a Stop Loss. This separates skilled traders from gamblers. Traders who survive do five things: have a plan, follow it, set Stop Loss every time, accept losses as normal, practice with fake money, and keep records of every trade.

Want to try risk-free trading? Start with a free demo account. Test whether you like it or not without risking real money. If you enjoy it, learn more. If not, you lose nothing.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned