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How to Become a Professional Stock Trader

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A professional stock trader is one of the smartest businessmen in the world. Developing a business from scratch is a very challenging task but the moment you start to trade the stock like the professional investors in Hong Kong, you push yourself to the edge. Unlike any other business people, stock traders know the perfect way to manage the risk factors. In fact, stock traders are just the business owners of a specific stock. He or she needs to have a clear idea about the business or else it will be really hard to predict the future price movement of a certain stock. Let’s learn some of the amazing steps which will help you to become a professional stock trader.

Technical analysis

Technical analysis is one of the prime ingredients essential in order to become successful in trading. You might be trading the stock market for years but without having a precise knowledge of the technical data, you are most likely to lose money. Being a new trader, you have to master the art of technical analysis by using a demo account. Some of the experienced stock traders often suggest not trading the real stock unless he or she has extensive demo trading experience. You need to learn the proper way to find the key support and resistance level or else you will always lose money.

Fundamental analysis

Learning fundamental analysis is one of the most crucial parts to buy stocks at the perfect price. Those who trade the market based on technical data are bound to lose money. Without blending technical and fundamental data you will never find great trades in the complex financial market. Some of you might think learning the fundamental analysis in stock trading is really hard but in reality, it’s very simple. Focus on the major stock news and try to predict its performance. If you feel confused about the fundamental data, stay in the sidelines and wait for the next possible trade setup.

Create a trading strategy

Being a stock trader, you need to have a balanced trading strategy. The pro traders always suggest using the demo account so that you can easily craft a balanced trading strategy without risking your real money. When you trade in the demo account make sure you trade the major stocks. If you start trading the exotic stocks it will be a little bit hard to find reliable news. In fact, for the first two years, you should focus on popular stocks and see how this market works. Once you create a perfect trading strategy, create a real trading account with Saxo and start trading the market with managed risk.

Managing your risk exposure

The new traders often forget the importance of risk management policy. They always trade the market without understanding the key nature of this business. On the other hand, the pro traders know very well that losing trades are nothing but a part of this profession. Unless you educate yourself properly you are most likely to lose money in the long run. Managing the risk factors in the trading business is really easy provided that you never risk more than 2% of your account balance. Make sure you are not using any high leverage trading account since it will force you to take unnecessary risk to recover the loss.

Conclusion

Trading the stock market like a pro trader is a very hard. However, if you manage to follow the tips mentioned in this article, you will never blow up the trading account. Try to learn more about the stock market and join the professional trading network. Try to learn from the experienced trader and seek help you get confused. Consider this profession as your secondary source of income unless you truly understand the nature of this market.

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