Profitable Trader: Earn Money Through Trading

Buy or sell assets on financial markets, with the aim of generating profits”; This could be a simple and clear definition of Trading activity.

If financial gains embody the final objective common to all Traders, they represent the last layer of a pyramid made up of multiple good practices.

Training, choice of strategy, risk management and psychology are all essential assets for a profitable Trader to generate real gains on the financial markets!


Trading is only suitable for informed customers capable of understanding the functioning of complex financial products (Futures, Options, CFDs, etc.) and of supporting high risks, including losses greater than deposits.

Understanding Trading

stock exchange board
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Unlike traditional trading (which can be seen in cult finance films such as Wall Street ) carried out on physical markets or over the phone, online trading offers fast and flexible access to global financial markets.

It involves speculating on the value of assets, such as stocks, currencies, commodities, and indices. Traders can buy low and sell higher, or vice versa via short selling.

Online trading platforms , such as ProRealTime or MetaTrader, offer intuitive user interfaces, analysis tools , and seamless access to multiple markets.

The main markets for trading online include:

  • The currency market (Forex)
    It is the largest financial market on the planet. The average daily trading volume exceeds 6 trillion dollars, according to the BIS (Bank for International Settlements) .
  • The stock market
    It allows you to buy and sell shares of listed companies.
  • The raw materials market
    This includes gold, oil, and many other natural resources.
  • Stock market indices
    This includes in particular the S&P 500 or the NASDAQ; the latter reflect the performance of the most powerful listed companies.

Traders use specific jargon:

  • Pip
    This is the smallest unit of movement of a currency pair in Forex, usually equal to 0.0001.
  • Spread
    This is the difference between the buying and selling price of an asset.
  • Margin
    This is the amount needed to open a Trading position. It represents a fraction of the total cost of the position.
  • Leverage
    It allows you to control a large position with relatively little capital, and amplifies both profits and losses.

Finally, let’s look at two examples of winning trades made in the financial markets. 

On Forex first of all, let’s imagine a purchase of 100,000 EUR/USD at 1.1200, then a sale at 1.1250. The profit made is then 50 pips.

Finally, on the stock market, imagine buying 10 shares at $100, then selling at $110. The profit made is then $100.

Choosing your Trading Strategy

Choosing your Trading strategy is a fundamental step for any Trader. Three approaches are used by many investors: Day Trading, Swing Trading, and Scalping. 

Each has its specific characteristics, advantages and disadvantages, adapted to different trading styles and objectives: 

  • Day Trading
    This strategy involves buying and selling financial assets during the same day. Traders thus benefit from small market fluctuations. It requires constant attention and great responsiveness. The main advantage of this strategy is not being exposed to the risks of market movements overnight. However, it is time-consuming and requires rapid analysis capabilities.
  • Swing Trading
    This approach focuses on longer-term trends, lasting a few days to several weeks. Swing Traders seek to profit from “swings,” or market fluctuations. This strategy requires less time than Day Trading, but requires a thorough understanding of market trends.
  • Scalping
    Scalping is a very short-term trading method, where positions are held for only a few minutes or even seconds. Scalpers make many small profits from minimal price movements.
    This technique requires intense concentration and the ability to act quickly. Although potentially lucrative, it is also risky and relatively stressful.
StrategyTemporary horizonBenefitsDisadvantages
Day TradingShort (day)No risk associated with the night market

Quick profits
Demand for time

Relatively high risk
Swing TradingMedium (days to weeks)Less time in front of the screen

Profits on trends
Requires solid market analysis

Risk linked to nightly fluctuations
ScalpingVery short (minutes)Multiple profit opportunities

Very risky and stressful

Requires extreme reactivity

The role of psychology

In Trading, discipline and management of emotions are essential to make rational decisions and avoid costly mistakes.

Discipline refers to the ability to follow a structured Trading plan, without being influenced by impulses or emotions.

Effective emotion management, on the other hand, involves remaining calm in the face of market fluctuations and resisting the temptation to make hasty decisions out of fear or greed.

So, to avoid the psychological traps linked to Trading, it is better:

  • Establish a Clear Trading Plan
    Defining clear rules for entry, exit and risk management of each trade helps minimize impulsive decisions.
  • Keeping Realistic Expectations
    Understanding that Trading involves risk and that it is impossible to win on every trade helps maintain a reasonable perspective.
  • Be patient
    Waiting for the right opportunities instead of forcing trades can significantly improve results.
  • Keep a Trading Journal
    Documenting each trade and including reasons for entering and exiting a position, helps analyze mistakes and successes for continuous learning.
  • Recognize and Accept Losses
    Accepting losses as an inevitable part of trading helps avoid disastrous emotional decisions such as “revenge against the market.”
  • Train yourself and stay informed
    Continuous education on the markets via one of the best current Trading training courses is a valuable help to improve and remain objective in relation to practice.

Building an Effective Trading Plan

A Trading plan serves as a roadmap for the Trader. It provides structure and discipline, essential for avoiding impulsive and emotional decisions.

To write a Trading plan, start by clearly defining your financial objectives. 

These objectives must be “SMART”, that is to say: 

  • Specific S
  • Measurable
  • Achievable
  • Realistic
  • T emporally defined

Think about your time horizon, your return expectations and your risk tolerance.

Next, assess your risk profile. This involves understanding your ability to tolerate market fluctuations and how comfortable you are with the possibility of losses.

Example of a Trading plan: 

Financial goalIncrease capital by 20% over 1 year
Risk profileModerate, willing to risk 2% of capital per trade
Trading StrategyDay Trading on Major Currency Pairs
Entry criteriaBuy/sell signals based on technical indicators (like moving averages )
Exit criteriaProfit of 10 pips or stop-loss of 5 pips
Risk managementDo not risk more than 2% of capital on a single trade
AssessmentMonthly review of the plan and adjustment if necessary

Risk management: key to profitable trading

Risk management involves implementing strategies to protect capital, maximize profits and minimize losses. 

With this in mind, stop loss and take profit orders are two essential tools: 

  • Stop loss
    This is an order placed to sell an asset when it reaches a certain price, so as to limit potential losses. For example, if you buy a stock at €100, you can place a stop loss order at €95 to limit your losses to €5 per share if the price falls.
  • Take profit
    It is a set order to sell an asset when its price reaches a specific level, so as to ensure a profit. If, in the same case, you set a take profit at €110, the sale will be automatically triggered at this price and your gain of €10 per share will thus be secured.

Diversification is another key risk management strategy. It consists of spreading investments across different assets, sectors or markets to reduce overall risk. 

If you don’t place “all your eggs in one basket”, you mechanically mitigate the impact of adverse movements on a single investment. 

For example, investing in stocks, bonds, and commodities can protect you against fluctuations specific to a single market.

Best Practices from Successful Traders

Continuing education is crucial in Trading. Markets are constantly evolving, and staying up to date with the latest trends, tools and strategies is essential. 

Quality resources can be found in the best trading books , online courses, webinars, and seminars. Specialized platforms such as Investopedia , Bloomberg , and the CFA Institute also offer valuable and reliable information.

Identify and avoid scams

The world of Trading is unfortunately also affected by scams. It is essential to be wary of promises of quick and easy gains. Guaranteed returns, pressure to invest quickly, lack of transparency… So many signals that should alert you!

Always seek independent reviews and testimonials before investing in any platform.

Likewise, familiarizing yourself with local and international trading regulations is important. Organizations like the Securities and Exchange Commission (SEC) in the United States or the Autorité des marchés financiers (AMF) in France protect investors and offer resources to identify the most reliable companies.

Build a network

Building a true Trading Network provides support, guidance and valuable insight. Participating in specialized forums, social media groups or local investment clubs can help share experiences and strategies.

Exchanging information with other Traders (for example through Social Trading available on many platforms today) allows you to discover new techniques and avoid common mistakes.

Making money through Trading requires more than just knowledge of the financial markets. 
Choosing a suitable strategy, taking risk management into account, controlling your emotions and building an effective trading plan are all crucial steps to succeed as a beginner investor .

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