Jobs for traders are increasingly appearing on the job search site. Trading is a multifaceted job that requires an analytical mindset and entrepreneurial acumen. To master this profession, you need to know where to start.
What is trading, who is a trader?
Trading is the process of buying and selling various assets in the form of securities, bonds, currencies or commodities. Unlike investing, which involves a “buy and hold” strategy, trading is all about getting the most out of buying and selling assets, not owning them. Trading success depends on the ability to make a profit over time, not all at once.
A trader is a trader who seeks to profit from trading.
Depending on the form of ownership and employment, there are two types of traders:
- Professional – trading is their main profession. Such traders are employed in a certain financial institution (bank, brokerage firm, insurance company, etc.). As a rule, they have the appropriate education, licence or certificate and trade for a fee in the interests of the company or its clients.
- Private or independent – these are non-professional traders, often self-taught, for whom trading is an additional way to earn money. Such traders trade exclusively for their own benefit, but they also use only their own resources, including spending their own money to start buying shares. They use public platforms that do not require special permissions for trading.
Also, a popular classification of traders has become their division into “bulls” and “bears”. This approach has become so popular that even sculptures near the stock exchanges are dedicated to it. Bulls benefit from higher prices in the market in order to profitably sell current assets, while bears benefit from a decrease in order to buy new assets cheaper.
How to master trading?
A novice trader needs to be prepared for the fact that earnings will not be immediate. For a stable profit, you need to spend a lot of time on training and develop certain skills. Only after fully mastering all the features of the trader’s work, he will be able to achieve the desired result.
What does a trader do? The main task of a trader is to trade in one of the financial markets in order to extract maximum profit. For successful trading, a specialist needs to regularly monitor and analyse the markets, develop his own strategy for the long term. An experienced trader is distinguished by minimal time spent on analysis, a calm attitude to news-surprises in the field of finance, the ability to filter out deceptive news that are designed to rock the financial market, and the ability to independently build accurate forecasts for market development.
The right start in trading will help you get through the initial unsuccessful stages and achieve regular profits. Do not be afraid of losses, falling prices and other surprises, because these are natural processes in any financial market.
Choosing the right platform is also important. It can be AvaTrade, which has established itself as a reliable broker, with which you can not only save capital, but also increase it.
