Strategy of success: how to become a professional trader
The statement about market trading high income is truthful. But with one remark: according to the statistics, within six months, 95% of speculators are leaving the market with partial or full loss of their assets. In this article we will discuss how to enter into the remaining 5%, become a professional and get a job at the large investment fund.
Algorithmic, high-frequency trading implies thousands of trades per day. There is no way to perform such intensive trading manually. That’s why it is implemented using automated algorithms. After algorithm integrations into the app, you just need to keep an eye on its work.
Any investment fund will prefer a trader, who is using automated strategy. Even in a case if his financial result is lower, he will have a significant advantage over a trader, who is “touching with hands” and therefore – less stable.
Mastering the profession may be more effective, if this process will be escorted with a professional and practicing mentor. Companies, which are searching for traders, educate them for free by investing company’s resources into them, for example, it’s time.
The process of learning can take from two to six months, depending on the individual skills and initial level of the future trader.
“Not more, but longer” – one of the key postulates of trading. Our profession excludes impulsivity, emotionality and high financial expectations (for example, 1% per day).
Investment funds summarize the results of traders' work every week and these results are available for all members of the group, including traders with high profits.
Collective discussion – the best way to rate the results and detect mistakes. Being in a group of like-minded people helps to save psychological stability and not to fall after emotions.
The selection of the correct strategy will not only define your personal path in trading, but will protect you from the whole set of risks.
One of the possible strategies may be an arbitrage trading - a model, which allows both to save and to increase capital.
Arbitrage trading is highly effective in the long range. Its adepts are well-known pillars of trading George Soros and Jim Simons.
Training can be effective, when it comes with practice and live results. Generally, the beginners are trading in a training mode, but with real prices. Stable results will also expand your limits for trading. And as a result – increase your profits.
Practice shows that only 5% of students are finishing the training. One of the reasons why the rest are leaving is a lack of faith in a positive result.
More reasons:
- Lack of the instant financial profit;
- Low motivation;
- Unwillingness in studying mathematical analysis;
- Fear of responsibility.
One of the fundamental reasons is a fear of high competition. It is a misconception: today, the market is starving strongly for professionals. Therefore, with enough effort, you will definitely get a job.
Arbitrage trading has a bonus system: a trader gets his salary based on his results.
With a context like this, a strategy of arbitrage speculation is highly effective, because it involves a minimal risk.
It is worth mentioning about the advantages of working in the investment fund. Trader doesn’t work with a client directly and is focused only on market, strategies and results.
Nowadays, the expectations of profitability of the fund are from 17% to 21% per year, which is equal to triple refinancing rates of the Central Bank. From this profitability an arbitrage trader has a share.
On average, the annual income of the trader doubles the average salary in Russia. The more experienced you are, the more credibility you have inside the fund, which will increase the limits of your possibilities with each year.
Georgy Pshenichnikov and Sergey Vasilenko