You often see traders making money from the market, but most people don't really understand how traders make money and how to start to become skilled. The truth is, it's not as complicated as you think; you just need to understand the basics.

Simply put, a trader is someone who makes money by buying low and selling high—gold, currencies, stocks, crypto, anything that fluctuates in price. It's like going to a market: see a shirt for 100 baht, know you can resell it for 200 baht, buy it, then sell it for a profit of 100 baht. Traders do the same thing, just replacing shirts with gold or dollars, and using a mobile phone instead of standing in front of a shop.

Unlike regular stock investors who usually buy and hold long-term, waiting for it to grow, traders buy and sell much more frequently. They might hold for just a few hours or days, then sell to take the profit margin. You can compare an investor to someone planting a mango tree, waiting three years to harvest, while a trader is like someone buying mangoes from the orchard and selling them at the market daily, making a profit from the price difference.

An interesting fact from financial market statistics shows that 72 percent of day traders end the year with losses. I'm not saying this to scare you, but to let you know that if you want to start, you need to prepare well.

There are three main ways traders make money. The first is buying low and selling high, the classic method. For example, gold at $4,600; you buy it, and when the price rises to $4,650, you sell for a $50 profit. The second is short selling—selling first, buying later. It sounds strange, but in trading markets, it's very easy: just press the sell button on an app, and the system handles everything. The third is using leverage as a multiplier for profit. If you have 1,000 baht and use 1:100 leverage, you control 100,000 baht worth of assets. Your profit can increase 100 times, but so can your losses. It’s like driving fast—very fast— but if you crash, the damage is severe.

There are four main types of traders, categorized by how long they hold positions. Scalpers enter and exit very quickly—seconds or a few minutes—making small profits multiple times a day, like a vendor selling skewers, earning 2 baht per skewer, selling 500 skewers a day for 1,000 baht. But it’s very stressful and not recommended for beginners.

Day traders trade within the same day, closing all positions before the market closes. It’s like a market vendor: buy in the morning, sell everything by evening, and don’t take goods home. The advantage is not worrying about tomorrow’s prices, but it requires all-day availability, which is hard if you have a full-time job.

Swing traders are most suitable for beginners. They open an order and hold it 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 after work. It’s like dropping a fishing line, setting conditions, and waiting for the right moment. This style is ideal for those with a regular job who want extra income from trading without quitting their job.

Position traders hold positions for weeks or months, focusing on the big picture. They don’t care about daily price fluctuations, just the long-term trend, like buying land and waiting for the overall upward trend.

If you want to become a trader, how should you start? First, learn the basics. You don’t need to study a lot—just understand what markets you can trade, how to read price charts, what stop loss and leverage are. That’s enough for now.

The most important step is practicing trading with fake money first. Every good trading app offers a demo account for free. You can trade with virtual money, with real market prices, just like real trading, but without risking actual money. It’s like a driving simulator before hitting the road—practice until you’re confident, then go live. It’s recommended to practice on a demo for at least 2-4 weeks before risking real money.

Choose a trading app that is properly licensed, regulated by ASIC or FCA, easy to use, offers a demo account, charges no commissions, and provides analysis tools.

Next, plan before trading. Don’t trade impulsively. Answer four questions before opening each order: What will I trade? Where will I enter? How much am I willing to lose if I’m wrong? Where will I take profit if I’m right? The golden rule is to risk no more than 1-2 percent of your total capital on each trade.

Once you’re confident with demo trading, start with small real money. Don’t risk a large sum right away—begin with an amount that, if lost, won’t cause problems. Gradually increase your capital as you see consistent results.

Being a trader offers freedom over time and income, but it also involves risk and pressure. You are your own boss—you can trade anywhere, anytime, with unlimited earning potential. The better you get, the more you can earn. You can start with a small amount, not necessarily hundreds of thousands, but about 70-90 percent of beginners lose money, stressed by watching prices fluctuate all day. No salary, no income if you don’t trade well that month. You must keep learning; stopping learning means stopping earning.

A skilled trader isn’t someone who never loses, but someone who loses little and profits big over the long term. They follow a plan, stick to it, and don’t change their mind midway. Always set a stop loss. Accept that losses are normal. Practice with fake money first, and keep a record of every trade to analyze mistakes and improve.

Becoming a trader isn’t hard, 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 and try trading. No need to deposit real money yet—just see if you like it. If you do, continue learning; if not, there’s nothing to lose.