Trading the prediction markets for a living is possible but achieving this level of success in the markets isn’t an easy task; we will give you some tips about how to become a professional prediction markets trader for a living. Some new traders earn some fast money initially and begin to think that trading is something easy. All of them fail in the long term because trading is tough.
First of all, if you want to be a professional trader, you must learn how to trade, and this is complicated, and if you find yourself in this position, you should sit down and read; many hours per day.
You can trade the market in two ways: Fundamental and Technical.
Fundamental analysis is usually more useful in stocks trading or trades with very long expiry. So, for short-term and intraday traders, technical analysis is the most useful tool.
If you want to be a professional and profitable trader, you should forget the fast and easy profit in the long run. It’s better to make a small and steady profit every day than a huge profit the first day and a huge loss the next day. The second situation can destroy your account quickly because you didn’t have the proper money management practices in place, maybe you didn’t prepare a solid and steady trading plan, or perhaps you don’t know when the odds are against you or with you.
The best choice is to know how much money you are willing to lose before taking a trade and then choose your trading strategy. Which assets or markets will you trade? Cryptocurrencies, Forex, Commodities, Stocks, Indices? When you choose the best for you, you should find the right trading strategy for your asset. Moreover, an essential part of trading is money management. Some good traders fail in the long run because of their poor money management.
Another essential factor that separates a newbie from a professional is psychology. Many times newbies are following their emotions, and they forget to look at the reality.
A professional trader:
- has a strong discipline and doesn’t follow his emotions.
- is following his trading plan,
- has money management rules,
- has technical analysis skills
- isn’t afraid of the market, but he always respects it.
- has a trading routine, and he is following it.
- is trading at the right time and only if there is a trading opportunity.
- doesn’t chase trades.
- is waiting for the market to give him a trade opportunity.