The growing popularity of online stock trading, which is observed in almost all countries of the world where it is possible to use the Internet, has caused an increased interest in financial markets and everything connected with them. However, many Internet users, having learned that practically anyone can engage in this type of activity, decide to master the profession of a trader. Naturally, the first question that interests them is related to the responsibilities of this subject of the global financial market. But many future traders are faced with a problem: the lack of economic education, which becomes a serious obstacle for those who want to independently deal with this type of activity. This review will help to understand what a trader is doing and how he makes money, even to readers who have never heard of online trading.

 

Traders secrets relieved

 

About complex things in simple words

The first thing a novice financial asset trader should know is the difference between a trader and an investor. Some sites contain articles in which the authors do not distinguish between these important categories. The investor invests money in the development of enterprises or the implementation of commercial projects. That is, his investments really “work” and make a profit, part of which he receives, according to the concluded agreements.

A trader is a trader, a speculator who does not produce anything and does not invest money in the real sector of the economy. Its profit arises from trading, more precisely, as a result of changes in the value of assets (currency, securities, raw materials or precious metals). Readers who lived in the era of socialism, most likely, the word “speculator” is alarming. But, in fact, there is nothing wrong with it. Speculation is a legitimate activity, and it also benefits the economy. Thanks to traders and their operations, the real exchange rate, the value of shares and other valuable assets are maintained.

Another important participant in online trading is a broker that performs the function of a link between a trader and the financial market that interests him. In other words – an intermediary who makes his profit on the price difference (spread) and at the expense of the most diverse commissions (honest and not so) that the trader pays. Brokers can take money for carrying out almost any operation, for example, for withdrawing funds from online traders, or because a trader has not used his account for a long time.

All markets that allow a trader to earn are classified according to their specialization. Forex deals with the conclusion of foreign exchange transactions, the stock market – with shares, and commodity – with raw materials. The choice of what and how to buy / sell depends on the personal preferences of the trader.

A separate topic is the most popular lately binary options. It sounds very serious, but in fact this type of trading can be considered one of the easiest. Depending on the type of option, the trader must determine how the value of the goods will change over a certain period of time. It will remain at the same level, go up / down, reach a specific value, etc.

Each decent broker offers its users the following services:

● be trained by studying educational materials;

● test your strength using a demo account (allows you to enter into transactions for virtual money);

● provides an opportunity to study charts, a trader’s calculator, trading signals, analytical information, etc., in order to use them to make your own forecasts for making profitable deals.

Practice shows that if a potential trader has the ability to this type of activity, he will definitely learn how to make money in the financial markets. The main thing is to never be in a hurry, not to trust questionable proposals and to study well the assets that he plans to deal with.

How to make money

In addition to the main source of income (asset trading), the trader has additional ways to make money. Most often, this is an affiliate program. Its essence is to bring to the project an active user. For this, the broker pays a certain reward. Market administrators can pay a fixed amount, as well as part of the profits that a new user has brought to the broker or calculate your income in a mixed manner.

Some users make deals only on certain dates or after the occurrence of important political / economic events. As an example, one can cite: a rise in prices for strategic raw materials, elections in the USA, exit of a certain country from the EU, etc.

There are also methods based on mathematical calculations. But for this you need to have a good start-up capital, diligence and attentiveness. For example, the same product is taken. You need to find two trading platforms that will make money if you put one on a raise, and the other on a lower asset value. Sometimes it turns out, if you correctly calculate the amount of rates and fees.

The main mistakes of newbies and experienced traders

In any field of human activity, there are certain mistakes that even professionals make, not to mention newbies. Traders in this case are no exception. Novice members of online trading are often in a hurry to choose a broker, too trusting his promises or feedback on specialized resources. This can lead to a loss of total capital. When choosing a trading platform, you must pay attention to the following things:

● “Age”, the older, the more likely it is a real broker.

● Licenses of reputable regulators.

● Comments from experienced traders who are reputable in the world of online trading. It is better not to pay attention to the reviews of unknowns by John, Maria, Anton.

Another common mistake that even experienced traders make is the desire to cover as many assets as possible. Of course, if an event has happened, and you manage to make a profitable deal even in the direction where you have never worked, then you can earn money, but you shouldn’t grab everything every once in a while.

The inability to correctly assess the possible profit and risks associated with its receipt, often failed, as experienced traders and their novice colleagues.

You should not work if you have any troubles or important unresolved issues. In such situations, even the most attentive bidders make mistakes.

Do not forget about the statistics. And do not just record closed deals with all related events, but analyze them as often as possible, compare them with similar situations, draw appropriate conclusions and, of course, test the result in practice.

Many newcomers sometimes ignore such a factor as bad internet, unstable connection. Such an error can have disastrous consequences. Remember this and always work, following all the above recommendations, then your chances of succeeding in such an exciting business as online trading will increase significantly.

TRADE OPTIONS

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

What do modern traders do?
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