Through this guide, we will see in particular how to become a trader, the differences that may exist with an investor or the possibility of becoming a trader without a diploma. The objective of this guide is to give, in the most exhaustive way possible, the most elements to anyone wishing to become an independent trader.


What is the profession of trader?

First, let’s see what the idea of ​​trading entails.


Trader Definition

The trader is the one who invests in the stock market and who opens positions on the markets. This business consists of buying and selling financial assets on the markets, seeking to profit from price fluctuations.


It is already important to make a distinction between two types of traders:


The salaried trader: He operates on behalf of a banking establishment, a company or an investment fund. Each month, he receives a fixed salary, to which will be added variable commissions (bonuses), which depend on his results and the results of the organization that employs him.

The independent trader: He trades for himself. Therefore, his income is not fixed and depends solely on his ability to anticipate market movements.

Trader's goals

Whether for an independent trader or for an employee trader, the objectives are strictly the same:


generate profit.

If we go into a little more detail, the role and objectives of the trader may differ depending on the organization in which they trade. Some economic theories give trading three roles:


Management: We will then talk about managing a portfolio of securities. The trader should seek to maintain a balanced portfolio

Protection: This is the protection of its heritage. Hedging strategies may be implemented for this purpose.

Speculation: This is often the almost exclusive role that is given to the trader. In concrete terms, it is a question of taking advantage of market opportunities on a whole range of products

The objective of the trader nevertheless remains to buy at the lowest to sell at the highest.


The difference between trader and investor



In the collective unconscious, these two terms are very close. They nevertheless present a fundamental difference: that of the relationship to time.


The trader is more likely to take and close positions in a short-duration approach.

The investor's approach is part of a longer-term approach.

From this difference arises different approaches and tools:


The trader will have an approach often based on graphic study and technical analysis

The investor will seek to take into consideration other economic variables such as the financial health of a sector, that of the supplier of the company in which he wishes to invest or interest rate policies.

Typical day of an online trader

However, if you want to make trading your livelihood full time, it will take discipline.


Thus, if we are looking to establish a typical day, we could consider that the beginning of the day will be spent analyzing current positions and summarizing the liquidity available for the day's trades. Gathering information will then be necessary to make the decision to close positions or open new ones.


This intelligence phase can be extremely long, which is why it is important to focus on sources that are both relevant but also save time.


The second part of the day is often used to open new positions, depending on the data collected.


The end of a trader's day ends as it began: analyzing the market and the evolution of asset prices.


This “typical day” is not to be considered as an inevitable model for every trader.


Become a trader: what to do as a beginner?

For this part, we will establish a step by step to become a trader through a platform.


Choose a trading platform

Open a trading account

Make a deposit and validate your account

Choose a market and financial products

Open a trading position