Activities carried out for the purpose of good earnings. This kind of work is done by people on special exchanges. Participants in these trades are called traders. In most cases, people who have money to invest play on such exchanges.
Who is engaged in trading?
For example, a person has a good job or a successful business. He provides enough for his family, while he has savings or free funds that can be invested in some profitable business. Take it to the Bank at interest? Now is the time that any Bank can suddenly go bankrupt, and if not, then inflation will eat up small interest rates, which does not encourage trust in such financial institutions in a crisis.
Keep it in a safe at home? Start making your own startup? Invest in real estate? These are often dead-end branches that have drawbacks-it takes a lot of money (buying real estate), then a lot of time-your business… And serious risks.
WHAT IS TRADING FOR?
Earnings. This is an activity, as a result of which you can multiply your financial resources many times. To act, of course, you need to know how-fools with money can not survive there.
Trading what is it
There are two options:
- to trade independently
- give the money to the management.
Money in management – in fact, the same risks-which specialist will get.
After all, a trader is essentially an ordinary person with skills. The one that buys cheaper and sells more expensive. But since trade is present on the stock exchange, without a direct agreement with the client, the task is seriously complicated.
The trader conducts a constant analysis of the product value, which today, according to forecasts, should sell well, find a way to invest in this product as little money as possible and by the end of the specified period to get the maximum amount of profit after the sale.
However, for those who are at least a little familiar with the exchanges, it has long been no secret that trading is a job that is increasingly penetrating the network and, like a computer, will soon be in every home. After all, access to the exchange is provided via the Internet, which allows any experienced Internet user to try themselves in this area.
Previously, access to a closed trading network could be obtained through brokers, who, in turn, opened it only on request and, of course, for good money. Of course, financial trading for normal people was something unattainable.
Brokers played mostly big or were useless (profitability went into negative territory if the profit from a long-term transaction was less than 15 thousand dollars). So there was a need for traders. They invest their savings in whatever product they see fit. The trader himself determines the time period in which he will trade, and he will take his profit. No mediation, except for the exchange itself.
REQUIRED SKILLS
So, what does a trader need in 2020? Good theoretical basis. Knowledge of trading rules. The trading algorithm. Understanding how trading works and the exchange itself. Ability to plan. The accumulated capital. Constant analysis of transactions on the exchange. It is necessary to keep statistics of your transactions and notice your mistakes. Develop new trading strategies. To draw conclusions.
If You want to have all the skills of a successful trader, we recommend that you watch the programs from Alexander Gerchik and choose the one that suits you.
ONLINE TRADING. Perhaps?
Nowadays, many exchanges have convenient access through the world wide web. This provides more effective monitoring of prices and turnover, opens up new opportunities for novice traders and simply colossal for professionals.
Since the main tool of the trader is technical and fundamental analysis, the Internet is the best environment for timely collection of information and operational forecasting of charts necessary for accurate determination of goods and prices.
Analysis, in turn, is necessary for the most profitable investment and subsequent extraction of maximum profit. And only online trading is an opportunity to make a profit remotely and in the shortest possible time.
For example, if Europe imposes sanctions on the import of agricultural products to Russia tomorrow, then there will be a shortage of this product in Russia. What does this mean? The fact that if the trader immediately invests in the agricultural industry, the prices in which have not yet had time to soar, then tomorrow, when they have already increased, he will receive his profit.
What was to be done? Follow the news, enable logic, have free funds and respond quickly on the exchange. That’s all the work, and online trading is a universal tool, because it is in the network that effective trading has become possible, the complex procedures of which so frightened early brokers before its existence online.
TYPES OF TRADING
Financial trading
This is a type of trading on the stock exchange, where they work exclusively with securities or shares. Since the price is regulated by demand, it will not be difficult for a competent trader to determine what is best to buy or sell at the moment.
For example, if the demand for shares of one firm is growing, it is clear that soon the price of them will rise, the main thing is to catch this connection. The trader takes matters into his own hands and buys as much as he can on credit at the current, not yet raised price.
And it turns out that the net profit will fall into his hands – the difference between tomorrow’s and today’s price. So, he sold the shares, in fact, without having them. He just bet on his analysis. He could have lost and been left in debt.
This is financial trading. Many, probably, have seen films in which the detractors of certain brokers or traders specifically, at a loss to themselves, “break” the forecasts of such traders in order to leave them in debt. It also happens.
High frequency (algorithmic) trading
This is trading carried out by computers that perform millions of computational actions per second and on the basis of these operations independently perform all transactions of purchase and sale of securities. Analysts claim that this type of trading stabilizes the use of markets and reduces the cost of turnover. But this method has many disadvantages. High-frequency trading is focused on short-term, even second-term operations that bring so little profit and work on small turnover that it has repeatedly led to a collapse of the markets.
“Forex” – trading or playing on the foreign exchange market
After America moved away from a stable change in the currency’s price, it became possible to earn good money on it. Still, because its cost can “float” in the range of four percent during the day. Then the world community under the General noise and created an international monetary system, with the help of which it became possible to make money on the money itself. Nothing complicated. You know that if you had a lot of dollars a year ago, you would sell them now, when they are worth twice as much. Traders know this too. Moreover, they can make money on this within a few seconds by betting on a certain currency, based on their assumptions that the demand for this currency is about to rise, and it will rise in price, after which it can be sold profitably. Therefore, today “Forex” trading is a powerful system for earning many Internet users and people who trust them to manage their money for profit.
LET ME KNOW THE PRICES
There are some nuances here. First, Forex levels can float by a couple of cents due to the large number of orders and different brokers. Therefore, Forex trading is more difficult than in the quieter Russian and European markets.
Secondly, large movements in currency pairs occur less frequently than, for example, in us stocks. The third nuance-thanks to the developed system of leverage on Forex, you can come with a minimum Deposit, and trade, literally starting with $ 100.
CONCLUSION
Trading is order to buy and sell profitably. Trading can be done by a computer, a hired trader, or you personally. In any case, you need to understand the basics of the exchange and know at least the classic purchase and sale schemes-both to control your assets and to trade yourself.
If you are interested in this topic, we invite you to a live seminar with Alexander Gerchik. This is an explanation of the exchange, the scheme of its work, a description of winning strategies and the construction of your personal trading algorithm.
