Trading: how to become a stock market trader?

What is a trader? What does its activity consist of? What characteristics distinguish him from the investor? How to become a trader? From choosing the stockbroker to drawing up a trading plan, including the use of stock market tools, Alxtrades goes over the fundamentals and offers you its advice from professional traders on how to become a better stock trader.

Discover the pitfalls to avoid, our portrait of the best traders, and our selection of trading training for all those who wish to become a stock trader.

WHAT IS A TRADER?

Trader and investor: what are the differences between these market players?

You may be wondering what is a trader? What is a trader? And above all, what are the differences between trading and investing? A trader is a person who buys and sells financial products in the financial markets. To trade is therefore to position oneself in financial assets with the aim of realizing a capital gain at the time of resale. In this sense, a trader is, for example, different from a financial analyst whose job is to carry out studies of listed companies and monitor macroeconomic news, in particular, to advise traders in their positions. portfolio managers.

The trader differs from the investor by the length of his position. While investors are generally positioned for the long term, traders often favor short to medium-term gains. Some, moreover, only keep their positions for a few seconds to a few minutes, or for only a few hours.

How to trade in the financial markets?

You must first be very aware of 5 absolutely essential themes for trading: the role and choice of the broker, the different existing trading styles and the one that is most suited to your personality, the different assets on which to position yourself, and the absolute need to clearly determine which ones you will favor, the times at which you can / will trade and what this implies in terms of the choice of assets, the placing of orders and the various solutions that will allow you to be as secure as possible your positions.

CHOOSE YOUR BROKER, THE FINANCIAL INTERMEDIARY WHO ALLOWS YOU TO TRADE

The broker is the trader's essential partner. This financial intermediary who makes it possible to buy and sell assets is necessary for the trader who could not carry out his activity without him.

Trader and broker or trader and broker are not opposed. These are two professions that cannot work without each other.

The broker provides a trading platform, tools, graphical analysis software, educational materials, which allow the trader to position themselves effectively on the financial markets.

"Who to trade with? Which broker to choose when you want to become an own account trader? Are the first questions to ask if you want to practice the activity of an independent trader.

DETERMINE YOUR TRADING STYLE AND REFINE YOUR INVESTMENT STRATEGY

To determine your trading style, you should consider your investment horizon (short, medium, or long term) and the duration of your positions. The position trader will hold his position for a few weeks or months. The swing trader will keep them for a few weeks to a few days, the day trader for a few hours and the scalping for a few seconds!