✔️ Information reviewed and updated in February 2024 by Pedro Martínez González
Known as Trader, these financial instrument traders They are responsible for buying and selling different types of assets. That is, they are people who work as a kind of merchant who, instead of buying and selling products, does so with financial instruments.
Being a Trader might seem like something simple, but in reality, it is not so simple, since you have to meet some points to call yourself a Trader. Here we will tell you what are the 9 steps to follow in order to become a trader or financial trader.
Although there are brokers and platforms that operate in all languages, you should know that the prevailing here is English. That is why having knowledge of this language turns out to be very important since most of the information, knowledge, trends, techniques and more arrive in English.
To be a good Trader we recommend that you prepare yourself in the aspect of languages, the more the better. And it is not only enough that you speak Spanish, your native language, and English well, as the markets are diversifying. Languages like Mandarin Chinese will soon become more relevant.
✨Preparation for merchant
Being a Trader requires a good level of preparation By this we do not mean that you have to study a degree in finance or economics. Rather, you must have knowledge and also experience to support your Trader title.
Fortunately, nowadays knowledge has been democratized so you can find a lot of ways to prepare yourself. For example, you can take online courses and read a large number of books in this area. You can even practice using the Demo accounts offered by many broker platforms.
✨An action plan to be a trader
If you want to become one of the best Trader in the market, then you should know that it is best to propose an action plan. Like any good plan, You must start by analyzing your current situation, where you are, in order to set yourself a clear objective.
With your objective clear, for example, you can proceed to mark the steps to follow, that is, the goals to be met. In addition, you should consider an investment strategy which will help you know how to invest and maximize resources as much as possible to operate efficiently.
✨Diversification of your portfolio
One of the most important points is the diversification of the portfolio. If we remember the analogy of the eggs, put all in the basket that break completely when falling. On the other hand, if we divide the eggs between several baskets, even if one falls, we will have the others.
The same applies to investments because Diversification not only helps you expand your reach in the market, it also allows you to reduce investment risk . There are many options to diversify your portfolio, for example investing in stocks, metal assets and Forex.
✨Learn to use commands
Successful traders know how to take advantage of all the tools brokers can offer when trading. Orders, for example, are one of the most efficient ways to operate assets, since they allow you to set and even schedule orders for both buying and selling assets.
There are options such as so-called orders Stop Loss which are responsible for stopping immediately when these fall to risky levels of loss. This type of operation, in addition, offer the option of automatically launching sell orders in case the asset value is low , so you can get your money back.
✨Don't trade with leverage at the start
While Trading with leverage allows you to invest large amounts of money with really minimal investments , this is not recommended. And is that when we not only do not have the necessary experience, we can also be impulsive and not very analytical.
The risk of leverage, if it is not used correctly, is that in case of losses we must cover their cost plus commissions and guarantees, exceeding our budget. This is because leverage is a kind of loan that the broker makes us to be able to operate without so much capital.
✨Practice on yourself
You cannot be a Trader and trade with other people's money if you have not made yours grow. That is why all financial experts agree that Every good trader must start with his own money.
That is, focus on making your investments with your savings and managing your product portfolio. This way you can gain experience while reducing the risk of losing someone else's money. This will allow you to generate results which, in turn, will give you.
✨Choose a broker according to the product to trade
You should know that each broker is strong in one aspect and weak in another, this also applies to the market or assets in which they operate. For example, there are brokers who are much better at investing in the stock market than in Forex.
We recommend you choose the broker based on the financial instrument in which you are going to invest. For example, if you are going to focus on Forex, look for a good broker to operate in Forex, if instead, you go to investment funds, look for a specialist broker in this area.
✨ Nerves of steel, patience and temperance to be a trader
Without a doubt, you will need to have nerves of steel and great temperance if you want to become the best Trader of all. This because of the market can be unpredictable, it has its ups and its downs which we never see coming. Added to this, we have the uncertainty that we are almost always experiencing.
All this forces us to have nerves of steel, as well as a much greater temperance. In addition, you will need patience to be able to travel this path which does not end in a day. Being a good broker is a constant work process to get results.