How to become a Bitcoin Trader? – Bitcoin – Bitcoin 2020

Last week, the first chapter of this Trading Tribune appeared. And the return was more than excellent! I’m really happy to see the enthusiasm with which it was welcomed! This week we will focus on the trader. Or rather, we will ask ourselves this question: what is a Bitcoin trader?

To be a trader, or not to be, that is the question!

General

The goal through this Trading grandstand, it’s about learning and discovering this discipline together, starting with the basics and gradually deepening.

So let’s start with the basics: define what a trader is!

A trader behind his computer watching the prices of his favorite cryptocurrencies including Bitcoin

Basically, a trader is a person who operates in the financial markets. Its purpose is simple: earn money by buying and selling financial assets.

These assets that the trader handles can take different forms, but we will mainly talk here about cryptocurrencies and Bitcoin.

However, 90% of everything said during this Trading Forum will also be valid for traditional markets.

The trader takes positions called “speculativeAs opposed to an investor who will seek to understand the fundamental value of an asset before putting his money into it.

Traders fall into three main categories:

  1. Swing trader
  2. Day trader
  3. Scalp trader

Each of these profiles has its own particularities. No profile is better than the other, it only depends on one person: you!

Indeed, it is your personality that will naturally lead you to adopt a trader profile, rather than another.

Swing trader

The swing trader is a trader who is going to be on the borderline between trading and investing.

The goal here is to predict the evolution of a cryptocurrency over several days or even weeks through technical analysis.

It’s the slowest form of trading, and often, by definition, the least stressful.

A swing trader can notably claim this activity in addition to his work.

Most of the traders you can see on the networks are swing traders.

Day trader

The day trader is a trader who is going to be much more active than the swing trader.

Indeed, in this context, it is every day that you will have positions that will open and close! Besides, the name of day trader comes from there: your trades are carried out in one and the same day (day in English).

Here, your goal will be to predict the evolution of cryptocurrencies over the coming hours and no longer days or weeks!

Scalp trader

The sclap trader, meanwhile, is a trader who will enter and exit his positions in minutes or even seconds!

It’s a way of trading very aggressive and which requires very important attention and concentration.

This is probably the most stressful trading situation and therefore, by extension, the one where managing emotions is the most complicated.

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The risks are therefore maximum in this situation.

Trader, a profession… apart!

Becoming a trader is like all trades: you can learn it!

And, you have to be frank, this job has its own particularities.

Illustration: The Wolf of Wall Street, by Martin Scorsese

Some people have a narrow view of trading and the trader.

A trader is not:

  • An indicator
  • A medium
  • Or any other person gifted with divination

A trader is above all a person who has formed to master the figures, the curves, but also these emotions and these impulses!

But in addition to these particular skills, it is also the conditions of activity of the trader that are unprecedented.

Indeed, you may find yourself manipulating sums of money that are … crazy! And when you trade for several thousand euros, you have to manage the pressure! But we will see that in a next chapter.

Then, if you are a trader, what does it change to do it since New York, Bali or Paris ? Strictly nothing. You are completely free to trade wherever you want, as long as your internet connection is stable!

Underrated skills

One of the images I like to use when we talk about the skills a trader needs is the iceberg.

An iceberg representing the sum of the trader's skills. Few are understood or seen.

Indeed, if you ask anyone what they think is the greatest skill to be a trader, the most common answer will be: “intelligence“.

More generally, we mainly hear about skills such as mathematics, computer science, or data analysis.

And yet this is to underestimate the real spectrum of skills of a trader.

When you describe mathematics, computer science is the tip of the iceberg that you are describing there. Without even suspecting the real depth of the latter …

A trader, a real one, one who is profitable over time, over several years, and who can claim to live on it must also master:

  • risk management
  • his emotions
  • have motivation
  • keep your patience
  • to be extremely rigorous

However, these aspects are often less attractive to present than the numbers and dollars lining up before your amazed eyes on social media.

And that’s why they’re sadly underrated and so many apprentice traders break their teeth from the start.

Conclusion

Being a trader – Bitcoin or any other financial asset – represents a real profession. It’s not an activity you get into as you do at PMU. Or… keep betting at PMU.

Next week, we will discover the useful tools for the Bitcoin trader! And they are many !

In the meantime, I hope you enjoyed reading this book, and that you still want to continue discovering this Trading Tribune by my side, every week. Anyway, I take great pleasure in sharing this with you!

How to become a Bitcoin Trader? – Bitcoin – Bitcoin 2020
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