Trader - who is it? Trader's Exchange

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

The profession of a trader has recently been actively gaining wide popularity. For this reason, it can be considered a speci alty of the XXI century. The presence of a computer, constant access to the Internet and a small amount of capital - all that a trader should have. Who is this and what risks does the profession carry - let's try to figure it out in this article.

Who is a trader

This is a speculator who works in the securities market. His main task is to get the maximum profit from their resale. Thus, the trader is interested in buying them low and selling them as high as possible.

Securities trading is considered to be a very profitable business. With proper management, in some cases it is possible to earn 100% of the value of transactions.

Professions of the profession

1. Every person can become a trader, regardless of education and social status. To acquire the necessary knowledge and important skills, it is enough to take a training course in a special program - a trading terminal. It is through it that all transactions of traders are carried out. Passing this stage is very important to getskills in trading and managing financial instruments.
2. Free schedule. You can work in the terminal at any time. There is no time limit.
3. You can work in any convenient place where there is Internet. The workplace is not tied to the office, so the trader can move freely and plan his day.
4. Unlimited profit. The amount of a trader's income depends on his experience, knowledge and ability to navigate in different situations in the financial market.
5. Your own leader. The exchange of traders is open to everyone, and its participants enter into transactions on their own and are not subordinate to anyone. Traders do not have a boss or any controller who would influence their salary and limit their actions. But in order to succeed only on your own, you need to be able to make decisions quickly and calculate all the moves. It is people with this mindset who move easily and earn big money.

Costs of the profession

At first glance it seems that every trader in the financial market earns a lot of money, buys expensive cars and luxurious houses. Yes, indeed, some speculators have been able to achieve good financial results, but these are the best traders who know the price of falling and losing and have come a long way until they have achieved certain skills.

The big mistake of many beginners is the desire to earn a lot and immediately. This is practically impossible, since the traders' exchange is a rather complex system that requires considerable experience and practice. And the first earnings often go bigat a cost: nervous breakdowns, depression, sleepless nights, a sense of hopelessness, criticism of relatives and relatives.

Some financiers consider trading to be the art of trading. Intuition, a developed sense of risk, the ability to stop in time are the main features that a real trader should have. Who it really is can only be known through personal experience. In any case, you need to remember that trading is just a way to make money. Therefore, you should not treat securities trading as something special, sacrificing he alth and loved ones.

Types of traders

There are several types of financial speculators:

1. Single trader - he learns to buy and sell securities through personal experience without any teaching and training from outside. He acquires important knowledge and skills from his own mistakes.
2. Cadet trader - before starting his activity, he attends special courses and reads financial textbooks. Such a speculator tries to actively communicate with experienced traders in order to derive for himself the key formula for monetary success.
3. A trader working in a financial company (prop-trading) - he gets a job in a trading company, bank, investment fund, where he is actively involved in securities trading. Depending on the terms of the transaction, such a trader will earn his capital or a percentage of the proceeds.

Single Trader

This path is ideal for those who do not like to limit theirfreedom. Usually independent, purposeful and stubborn people become solo traders.

Main features of this path:

• complete self-education - read somewhere, saw, heard something;
• a difficult practice that does not always lead to profit - often such loners work in circles and make the same mistakes, not understanding what they miscalculated.

As a rule, the speculator begins to earn the first money after a long training. He moves to the level of stable profit and grows to the level of a professional trader. If he continues to work in the same spirit, great opportunities will open up for him: increasing his own capital, attracting new investors or starting his own trading company.

Unfortunately, this kind of trading has its downsides. Firstly, you can re-read different books, try all possible financial strategies, but never learn how to trade profitably. Secondly, a beginner will need to spend some time until he becomes a real trader. Those who do not stand this test often leave the business prematurely.

Cadet Trader

Mostly well-known brokerage and trading companies offer training courses to attract new clients and earn extra money. Usually surface training is free and serves as an enticing ploy for beginners. More in-depth courses are already paid and are not cheap. As a rule, they are carried out by successful traders,who created their own style of trading and developed a strategy for successful speculation.

Some newbies use publicly available information from the internet or brochures. But they are not yet able to distinguish which information is valuable and which is a useless set of characters. For this reason, it is safer to attend good courses, the main advantages of which are:

1. Systematic - only verified information is taught at the trainings, which is presented in a concise and orderly manner.
2. Practice. Training takes place in real trading mode, during which each student can feel like a speculator and try to make money.
3. Teachers share common mistakes to avoid. The unsuccessful experience of other traders allows you to protect yourself from possible failures and significantly save money, contributing to a quick approach to profitable trades.
4. New contacts and acquaintances. Often in the courses you can find like-minded people with whom you can consult and get the necessary support. Even after the completion of the trainings, it is always allowed to ask the teachers for advice.

Possible downsides of learning - choosing bad courses that won't teach you anything; the desire to master different seminars, as a result of which different information is mixed in the head; the student is not able to apply the acquired knowledge in practice.

Prop Trading

There are big trading companies that train new traders and give them theircapital, so that they conduct transactions in the financial market. All employees of such an organization are the main sources of its profit. Other company income: training courses, exchange commissions and monthly fees for using the trading terminal.

The main advantages of this type of trading are high-quality training, effective risk management within the company, active support and advice throughout the entire time of work. If a trader works well, he will soon receive good dividends. But in case of losing trades, the company will not value such an employee and, most likely, fire him.

Starting capital

The amount of starting capital depends on the desired profit and risk appetite. It is desirable to enter the traders' market with little money. As you gain positive experience, you can increase the amount of invested capital. It is important for every beginner to remember that it is impossible to lose all the money invested. In the event of a failed transaction, he will suffer minor losses. The fact is that the value of shares never falls to zero, but can only change slightly. It is on such fluctuations that every trader tries to make a profit. Whoever has mastered this will be able to achieve great results.