Quite often in everyday life you can hear about traders and trading. Sometimes it is not entirely clear what is meant by these relatively new concepts, all the more curious when they offer you to become a trader.
For the first time, the mention of trading sounded in England on the famous London Stock Exchange: "trading" - trade. The concept of trade in relation to money and securities took root and from the beginning of the previous century began to be actively used in the English-speaking environment, and then it became international at all.
History of the concept
Initially, it was used in marketing to study consumer demand. This was followed by the forecast of sales levels, and later, trading became widespread and entered the life of ordinary people working in the commodity and foreign exchange markets, who were later called traders.
A successful trader is one who knows how to correctly predict price behavior and get rid of his capital in time in order to acquire a new one. This requires a thorough analysis of market situations and their correct interpretation.
Today, speaking about trading, one should bear in mind trading on the stock and financial markets. So, a trader is a trader in securities, as well as in any currency. But the trader is special, he does not hold the "product" in his hands, moreover, the "product" may not have a physical shell at all. The trader works with the price and its movement, he does not need to physically purchase, transport or store banknotes. He buys a certain amount of them and they are “recorded” on his account, then he sells them - they are “written off”. It is very similar to children's games with very big money, which is why they often say “play on the stock exchange”. However, the similarities between this work and the game do not end there.
Profit from buying and selling comes by winning on the difference in rates, when buying or selling various securities (stocks, bonds, futures, etc.) or currencies. That is, at first, securities are purchased at one price, and over time they are sold at another, already higher one. The process of such work and making a profit is called trading.
Professional big money games
There are professional traders, and there are amateurs. Professionals, as a rule, are quite deeply and thoroughly engaged in stock trading, it serves as a job for them and a source of basic income. In this case, a trader can use his own funds, investors' funds, as well as the finances of the company in which he works.
Most often, professionals are hired employees who strive to get a higher income on the stock exchange for their company. Consequently, the higher the income of the company, the higher the trader's salary.
Amateurs, unlike professionals, already have a source of income from another type of activity. For them, gambling is just a hobby in order to get additional income.
No specialized education is required to trade on the stock exchange. Anyone with excellent analytical skills and the required amount of funds at their disposal can become a trader.
Newcomers are offered platforms that, of course, are far from the real financial market, but nevertheless, they also allow you to get some income. A beginner trader should play on currency pairs: it is quite simple to calculate the movement of one currency relative to another in a certain time period, it is only important to be able to moderate the excitement and withdraw money to a real money account in time.
Nevertheless, only a few will be able to achieve success in this area - truly talented traders who are able to correctly assess the entire situation in the financial market. Therefore, trading is very often compared to art.