Previously, an employee of a brokerage company was called a trader. He executed customer requests by buying or selling securities on the stock exchange. Accordingly, he worked for a brokerage company, and received remuneration from her.
Now any person can make a trader who makes transactions on the currency stock markets and exchanges in order to generate income due to the difference in the prices of purchased and sold assets: currencies, stocks, futures, and others.
Where do traders trade?
There are special platforms for trading today – exchanges:
Commodity. It trades important resources – metals, oil, wheat and so on. Options and futures are bought on commodity exchanges – contracts for the future delivery of goods that participants often do not have available. It is contracts that are sold and bought;
Stock. Trading is carried out by stocks of companies;
Interbank foreign exchange market, or Forex – currency trading is conducted on it.
A trader does not seek to retain assets, unlike, for example, a long-term investor. Its purpose is not ownership of assets, but the ability to sell them more expensive at a given moment. Sometimes a trader sells an asset at a price not favorable to him, if he does not see a more acceptable way out.
What are the main tasks of the trader?
Analysis of the current situation.
Identification of factors that can affect the movement of prices, taking into account short-term or long-term dynamics.
Choosing tactics, checking the rules by which a deal opens and closes.
Calculation of the level at which profit or loss will be recorded.
Waiting for the desired trend and choosing an entry point.
What are the benefits and challenges of being a trader?
The positive features of the profession include:
The distance to bidding, so you can work from any convenient place.
some trading platforms even work on tablets and phones, which is convenient, since if necessary, you can make transactions day and night.
Income can theoretically be unlimited. A trader makes money thanks to his professional literacy, and in accordance with it. Therefore, his earnings may be higher than in many other professions, where the level of profitability is initially set.
Work teaches to cope with stresses, without which trading is impossible. Working on the stock exchange, its participant tempers its character, learns to act consciously and clearly, controlling its emotions. And it is useful in any sphere of life.
Trading is an independent business, the broker is not the bosses as such, it only helps and prompts. The trader independently sets the amount of work.
However, there are many difficulties in the profession.
Getting a stable income is quite difficult. Despite the fact that many can work as a trader, not everyone succeeds in making good money: the skills necessary for successful work are developed over the years.
Work involves high financial risks. The chances of losing invested capital are very high, especially if you neglect the rules of money management, for example, when trading too large amounts. Responsibility for own actions and their results is necessary.
A successful trader must understand the characteristics of the profession and prepare for them, and it is advisable for a beginner to read several textbooks first, and only then invest in stock speculation.