What are the players on the stock exchange called, and what is it like?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Many novice traders, students of economics and just lovers of everything new often wonder what the stock exchange is. This is the place where securities are traded. There is no single center, but the existing ones are interconnected and have similar quotes, that is, prices for specific quoted shares. For example, the value of a security against the Russian ruble or US dollar.

What are the players on the stock exchange called

Most often - just traders. However, you can call them stock speculators, private investors, retail traders or stock brokers. The essence of this profession does not change from this. Despite this, a trader is the most correct and established name for this type of activity. In principle, the way players are called on the stock exchange is applicable to both currency and resource markets. At the same time, it does not matter what instruments are being worked with - forex, futures or options. The type of activity will be called trading.

Bulls,bears and stereotypes

Historically, traders are given peculiar nicknames, depending on their behavior on the stock exchange. It's also another example of how stock market players are called.

Bulls are bullish traders at a certain point in time. In fact, these are those who buy shares now, believing that the price will increase in the future. When the price of a stock or a quoted pair goes up, this trend is called bullish. However, it is not only the bulls that influence the price. Bears are traders who believe that the price will go down and sell stocks or currencies. As for the price, everything here is similar to bulls, only the other way around: if the price tends to go down, then the mood is bearish. It is important to remember that these are stereotypes, and only a novice trader adheres to them. It doesn’t matter what the players are called on the stock exchange, because there are practically no pure bulls or bears, each exchange participant is looking for opportunities to earn money at the right time and can adjust his behavior depending on the situation and the forecast he made. If there are signs that the price will go down, an experienced trader sells, and in the case when the value of shares or currency grows, he buys. It is very important to be able to identify such moments and seize the opportunity. For this there is technical and fundamental analysis. The first involves working with charts and indicators, the second - with economic news and financial reports of specific enterprises.

Stock exchanges in Russia

Almost every state has its own operators of activities related to the circulation of securities. There are many stock exchanges in the countries of the European Union, developed Asian countries and, of course, in the USA. This is due to economic growth, development and great demand for this type of service. As for our state, the Russian stock exchanges include six main operators of such activities, but in reality there are many more. The terms of trade, the minimum threshold for funds for transactions, as well as the list of quoted shares will depend on the chosen service provider. The most famous stock exchanges in Russia are MICEX (Moscow Exchange, MOEX) and RTS (Russian Trading System). It should be noted that when working with exchanges there are some nuances, the main of which is the presence of an intermediary in the form of a broker between the exchange and the client. This is a separate legal entity, has a license and ensures the transfer of information about transactions. The list of brokers we work with can be found on the website of a particular exchange. Trading without intermediaries is possible, but requires additional costs, server equipment rental, and in some cases, opening a legal entity and obtaining a license.

Where to start

It is important to understand that such activities are serious work that requires a lot of effort. Many beginners do not distinguish trading from gambling and perceive this field of activity in a completely incorrect way. Typically, a person may think that if one is unluckyonce, then someday luck will turn to face him. This is also a false statement. Working on the stock exchange is, first of all, the ability to assimilate information and interpret it correctly. It is important to master technical and fundamental analysis, read specialized literature, analytical publications, special websites and news. You should also pay attention to the various financial statements of those companies whose shares you are going to buy.

What else is important to know

You should be wary of various "teachers", paid "wonder signals" and other dubious things. As they say, free cheese is only in a mousetrap. And in our case, you will also have to pay for getting into this very mousetrap. However, if a novice trader will conscientiously engage in, read useful literature and really fall in love with this type of activity, then he will definitely achieve certain success. There is a huge amount of information in the public domain. Most importantly, do not take advice from strangers and do not buy anything from them. You should also be wary of calls from various managers. They tend to be pushers or outright scams, but this is more common in the foreign exchange market, in particular Forex.

Other instruments

Before you try your hand at the stock exchange, you should learn how to work with simpler tools. For example, "Forex" or binary options can help a novice trader master technical analysis, because itthe principles will be identical with both currency and stocks and even resources. In addition, Forex and binary brokers provide their clients with demo accounts where they can work with virtual funds. However, the listed instruments have one main drawback: such trades are fiction, trades are not displayed outside the broker's server, but are only a semblance of bets on real quotes.