Trading stocks have become the major hit today, as there are about several million active traders that is now doing some forex learning, or just skipping the learning process altogether, and hoping that their couple hundreds dollar can turn out to be million dollars in no time. So many people are mistaking the stock trading process with gambling, and therefore they are entering the stock market without even have the slightest idea about how to become a proper stock trader and so on.

There are several things that you need to understand before even you set foot on the stock market and start buying stocks like crazy. First, stock trading is not a gamble at all, as you need to be informed about the thing that you are doing, and also the kind of company that you putting your money into. You need to understand the background of their company, and also the record of their stock, so you will have any general idea about what kind of business you are running into. 

Understanding The Type Of Trader Today

There are roughly three types of trader that you need to know, and therefore you need to understand each one of them, and becoming one of them because eventually, the trader will fall into those three categories. The first is the day trader, which is more or less so popular today, as there are so many traders that aspire to become this kind of trader. This is perhaps due to the fact that they are the fastest in getting some money, or at least the fastest to gain some return after investment. 

This is the kind of trader that purchases a certain stock and sells it 5 minutes after they sell it. The difference in price might be not too large, but as we have said before, they don’t care about the amount of money that they are generating, as they care only to the speed that they generate much money. Overall, this is the kind of trader that is most exhaustive, as you need to repeatedly check the stock price, sells, buy and so on. to know more about the day trader, you can do some forex learning.

The Swing Trader and The Super Trader

Swing trader is the kind of balancing type between the speed and the amount of cash you can get as a trader. The swing trader usually holds their money for a week or two, and then sells it after a certain amount of time. Usually, they will get much larger money than the day trader, at the expense of the time that you need to spend longer on the investment. This is the safest way, although the result could be pretty disappointing as the result is not large enough to justify the time. 

The last and the most ideal type of trading that you can be is the super trader. The super trader is a mature trader, that won’t freak out when the price of the stock plummeting. They are patient and will hold their stock as long as they can, which is usually up to 5 to 6 months, and they are the winner here. They will gain the largest amount of money, though takes so many months. If you want to become a trader, it is recommended to become the super trader. 

Tips Before Start Trading

Trading is not easy, and therefore you need to be keen on your surroundings as well. But as buffet say, you must not invest your money in the thing that you don’t understand.  In order to understand it, you need to take some courses such as forex learning.