The profession of a trader has recently been gaining wide popularity. For this reason, it can be considered a specialty of the XXI century. Having a computer, constant access to the Internet and little capital are all that a trader should have. Who is this and what risks does the profession bear? Let's try to understand this article.
Who is a trader?
This is a speculator who works in the securities market. Its main task is to get the maximum profit from their resale. Thus, the trader is interested in buying them cheaply and selling them as expensive as possible.
Securities trading is considered a very profitable business. With proper management, in some cases it is possible to earn 100% of the value of transactions.
Pros of the profession
- Any 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 in order to gain skills in bidding and managing financial instruments.
- Free schedule. You can work in the terminal at any time. No time limits exist.
- You can work in any convenient place where there is Internet. The workplace is not tied to the office, so the trader can move around freely and plan his day.
- Unlimited profit. The amount of income of a trader depends on his experience, knowledge and ability to navigate in different situations in the financial market.
- Himself a leader. The exchange of traders is open to all, and its participants independently enter into transactions and are not subordinate to anyone. Traders do not have a boss or any controller to influence their salaries and limit their actions. But in order to succeed only on your own, you need to be able to quickly make decisions and calculate all the moves. It is people with such thinking that easily advance and earn big money.
Costs of a profession
At first glance, it seems that every trader in the financial market makes a lot of money, buys expensive cars and luxury homes. Yes, indeed, some speculators were able to achieve good financial results, but these are the best traders who know the price of falling and losing and have gone the hard way until they have achieved certain skills.
The big mistake of many beginners is the desire to earn a lot right away. This is almost impossible, because the exchange of traders is a rather complex system that requires considerable experience and practice. And the first earnings often come at a great price: nervous breakdowns, depression, sleepless nights, a sense of hopelessness, the censure of relatives and relatives.
Some financiers consider trading the art of trading. Intuition, a developed sense of risk, the ability to stop on time are the main features that a real trader should have. Who it really is, can only be learned from personal experience. In any case, you need to remember that trading is just a way of making money. Therefore, do not treat securities trading as something special, sacrificing health and loved ones.
Types of Traders
There are several types of financial speculators:
- A lone trader - he learns to buy and sell securities by personal experience without any external training and training. He gains important knowledge and skills from his own mistakes.
- Cadet trader - before starting his career, he attends special courses and reads financial textbooks. Such a speculator tries to actively communicate with experienced traders in order to derive for himself a key formula for monetary success.
- 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 the sale of securities. Depending on the conditions of the transaction, such a trader will earn his capital or a percentage of the proceeds.
Lone trader
This path is ideal for those who do not like to limit their freedom. Typically, single traders become independent, motivated and stubborn people.
The main features of this path:
- complete self-education - somewhere I read, saw, heard something;
- difficult practice, which does not always lead to profit - often such loners work in a circle 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 goes 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 opening his own trading company.
Unfortunately, this type of trading has negative aspects. 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 turns out to be a real trader. Whoever fails this test often quits business prematurely.
Cadet trader
Basically, well-known brokerage and trading companies offer to take training courses with them in order to attract new customers and earn extra money. Usually superficial training is free and serves as an enticing trick for beginners. More advanced courses are already paid and are not cheap. As a rule, they are conducted by successful traders who have created their own trading style and developed a strategy for successful speculation.
Some beginners use publicly available information from the Internet or advertising 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:
- Systematic - at the trainings they teach only verified information, which is presented in a concise and orderly form.
- Practice. Training takes place in real trading mode, during which each student can feel himself in the role of a speculator and try to make money.
- Teachers share common mistakes to avoid. The unsuccessful experience of other traders will allow you to protect yourself from possible failures and significantly save money, contributing to a quick approach to profitable trading.
- 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 completion of the trainings, it is always allowed to turn to teachers for advice.
Possible negative points from training are the choice of bad courses that will not teach anything; desire to master different seminars, as a result of which different information is mixed in the head; the student is not able to put into practice the acquired knowledge.
Prop trading
There are large trading companies that train new traders and give them their capital so that they conduct transactions in the financial market. All employees of such an organization are the main sources of its profit. Other company revenues: training courses, exchange commissions and a monthly fee for using the trading terminal.
The main advantages of this type of trading are quality training, effective risk management within the company, active support and advice throughout the work. If a trader works well, he will soon receive good dividends. But in case of loss-making transactions, the company will not cherish such an employee and, most likely, will fire him.
Start-up capital
The amount of start-up capital depends on the desired profit and risk appetite. It is advisable to enter the trader 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 an unsuccessful transaction, he will incur minor losses. The fact is that the value of stocks never drops to zero, but can only slightly change. It is on such fluctuations that every trader tries to make a profit. Whoever has mastered this will be able to achieve great results.