How to become an experienced Forex trader?
Becoming a trader is, for some people, a dream; for others, a simple job. In this article, we are going to deal with the profession of trader, how to become a trader, which course is to be favored to become a trader, what studies to do to be a trader, also the steps to achieve it when you do not want to obtain a diploma and practice the profession of independent trader.
In this article, we will also give you information regarding the salary of a trader. If you are wondering how much traders earn and how much freelance traders earn and find out their salary, you have come to the right place.
Finally, you can access online training courses to become a trader. These training courses touch on all markets: Forex, stocks, CFDs, and cryptocurrency.
What is a Forex trader, and how do you become one?
That is the question of this content. It is essential to be able to understand the trading profession and to have explanations as to how it works, to know the qualities required, but also to understand that trading is a severe activity and not a game.
The profession of trader – What is a trader?
A trader buys and sells financial products on the stock exchange to make a profit.
Traders are not just going to be looking to make money. They will also monitor the financial markets in real-time, keep themselves informed of current events, and detect opportunities thanks, in particular to advanced statistical tools and IT tools.
Trading is stressful since it involves managing a financial risk, and the sums of money are essential. It requires constant reactivity. Indeed, decision-making is a critical factor in a trader’s trade since the trader will either make money or lose it.
The trader must, therefore, be able to keep his cool. Knowing how to step back and manage stress are two fundamental qualities for a trader.
Finally, a trader is either an employee of an institution, very often financial, or he is on his account (liberal profession).
When a trader is salaried, he works in a trading room.
When a trader is self-employed, he works from home or his office.
Many people who have studied market finance seek to become professional traders, but places in this profession are difficult to obtain, even for the most motivated.
Fortunately, the trading profession has been democratized thanks to online trading. It has become very accessible to everyone, whether financial professionals or individuals who initiate themselves through training—trading, and tools to learn without risk, such as the demo account.
However, even though becoming an online trader is accessible to everyone, it does not mean trading is easy. Online trading remains a risky business, and this guide will help you avoid the mistakes of the newbie independent trader.
How to become a Forex trader?
For some, becoming a trader is a dream as the passion is present; for others, becoming a trader is a simple, lucrative objective.
Becoming a trader takes work. Significant effort will be required if you want to become a trader for an institution or on your own.
Again, trading and investing is not a game.
To become a trader, you have two solutions: studies and obtaining a Master II (bac +5) minimum and training.
What are the studies to be a Forex trader?
After a Scientific baccalaureate, the candidate must move towards long studies by integrating an engineering school, a business school, or an IEP (Institute of Political Studies) specializing in Finance. These schools are considered trading schools to become a trader.
Work placements are also a fundamental point. Prefer a school offering several internships during your studies.
A course in mathematics, statistics, market finance, financial engineering, or financial computing will also be well received by professionals in the sector.
Future traders will also have an excellent level of English. Indeed, most operations and exchanges are done in English in a trading room.
How to become a Forex trader without a diploma?
Graduating from primary school is not mandatory to become a trader.
Indeed, today, you can become a trader on your account without a diploma. The path will be more complicated, especially to have enough income to live on.
When you join an institution, that company will provide you with clients with excess cash to invest, or you will trade on that company’s account. You will never change your money.
But when you start as an independent trader, the starting capital will be yours.
Thus, the consequences can be very quickly significant in the event of losses.
It is essential to state that you must refrain from managing third-party money. You must either obtain the AMF (Financial Markets Authority) approval or trade your capital.
Warning: It is important to remember that you should never trade money that you need in the short term.
This is why it is essential to train before you start. Learning the strategies, using the right tools, and managing your money are keys to lasting over time.
How much does a Forex trader earn?
The salary of a beginner trader is around €5,000 gross, excluding bonuses. This remuneration can vary according to the diploma of the novice trader, his activity, the institution that recruits the trader (work in a bank, for example), and the location.
Indeed, a trading room in Paris offers a higher salary to traders than in a trading room located in a medium-sized city.
Salary trading
If you’re starting as a freelance trader, your trading-related salary will depend on your starting capital, strategy, and success. We suggest you read this article from individuals who profit from trading.
- Become a Trader in 8 Steps
- Set a trading goal
- Define your trader profile
- Take a trading course
- Choose a trading strategy
- Develop a trading plan
- Practice on a demo account
- Switch to a real version with small positions
- Increase positions with experience
