I've been observing this for a while and I think it's worth clarifying what a trader really is, because there's a lot of confusion about it. People often confuse traders with investors or brokers, and they are completely different roles in the markets.

A trader is basically someone who operates with their own resources in the financial markets, seeking short-term profits. It can be an individual person or an institution, and they trade all kinds of assets: currencies, cryptocurrencies, stocks, bonds, commodities, indices, CFDs. What differentiates a professional trader from an individual one is that the former operates within a regulated financial entity, while the latter does it on their own.

Now, if you want to become a trader from scratch, there are clear steps you need to follow. First, you need solid financial education. It’s not mandatory to have a university degree, but you must understand how markets work, what factors influence them, how to read charts, and analyze economic news. Then, you need to choose a regulated broker that allows you to practice before investing real money. Many offer demo accounts with virtual money.

The next step is to define your strategy and the type of assets you want to trade. This is where different trading styles come into play. Some traders prefer day trading, making multiple trades during the day. Others are scalpers, seeking small, consistent gains. There are momentum traders who capitalize on strong trends, and swing traders who hold positions for several days or weeks. There are also those who base their decisions on technical or fundamental analysis.

The most important thing is that you understand what a trader is in terms of risk management. No matter what style you practice, you need tools like stop loss to limit losses, take profit to secure gains, and asset diversification. This is fundamental.

Now, let’s be realistic with the statistics. Only 13% of day traders achieve consistent positive profitability over six months. 1% make profits after five years. Almost 40% give up in the first month, and only 13% persist after three years. These numbers are brutal but important to understand.

Additionally, the market is evolving toward algorithmic trading, which already accounts for between 60% and 75% of the total volume in developed markets. This means individual traders are competing against increasingly sophisticated machines.

My recommendation: if you really want to learn what a trader is and practice it, do it as a secondary activity while keeping your main job. Trading can offer additional income, but it should never be your only source of financial stability. Invest only what you’re willing to lose completely, because that can happen.

The learning curve is steep, competition is fierce, and patience is more valuable than speed. If you understand this from the start, at least you’ll be better prepared than most.