How to Become a Lead Trader?

The right mindset is the most important requirement before you dive into this career. A successful trader has a combination of knowledge, skills, and personal traits that help you thrive in this hectic role. Contrary to popular belief that a trader job is the best way to cash in on some easy money, trading is actually a rather challenging field. You must be:

• Adept with mathematical analysis.
• Aware of behavioral psychology.
• Able to stomach risk-taking.
• An entrepreneur who's willing to put in long hours with very little leave.
• A lifelong learner.
• Committed to daily interaction with clients.

The market is dynamic, and a proven strategy may suddenly fail. That's why experts recommend that novice traders select a couple of established trade strategies, such as:

• Start small.
• Watch your timing.
• Avoid stocks under $5 a share.
• Stick to limited orders.
• Stay realistic about profits.
• Make decisions with logic, not emotion.

Once you've formulated your plan, test it with your broker's virtual money account or if you're investment-savvy, back-test your strategy with the market's vast stores of historical data. Don't forget to factor in costs like brokerage and utility subscription fees to accurately assess your projected profits.

Even if you have sufficient capital and plenty of market experience, don't play big on your first few trades. Instead, start small and put your new strategies to work. Only increase your stakes after you realize consistent success with your modest transactions.

Once you've gotten the hang of working as a trader, take a look at your brokerage house. This is one area where you can expand wisely. Trading involves frequent daily transactions, which can lead to exorbitant costs. Do your research, and select a brokerage plan that's consistent with your volume, whether it's a staggering plan that's most cost-effective or a fixed option.