Trading: how to make a fortune on it? This is probably one of the most frequent questions when it comes to stock trading. And no wonder, modern life is the pursuit of profit, and every person wants to achieve the maximum result with the least effort.

Trading - what is it? Trading: definition, features and reviews

Many see advertising and ask the question: “Trading is what is it?” Many people understand it differently. So trading - what is it? The definition for this term is literally translated as trade. Indeed, this area involves the purchase and sale of something in any market. However, not everything is so simple. Trading is primarily a variety of different tools and methods for carrying out operations. There are so many possibilities that it will be difficult to list everything, but you can still try to bring some of them.

In a more popular sense, trading is trading on Forex or binary options. It turned out that these tools are now the most common and in great demand. The work process itself is a prediction of the price of currency pairs, for example, how many dollars will cost one euro. The exchanges work with fractional numbers, and the number of decimal places can be quite large. This means that even minor fluctuations in exchange rate differences can bring profits or losses to the trader. The principle of trade is obvious, if the forecast is correct, then you will get a profit, and vice versa. Services to enter the market, as a rule, provides a special company. Trading is possible without intermediaries, but it is already more difficult, it requires adherence to many nuances. Independent work may require registration of a legal entity, obtaining a license, as well as rental of server equipment and communication channels.

What is a trading company

Unpleasant truth

Let's return to the deception of customers. There is very little such information, but it is important that future traders understand what they are associated with. Most forex brokers do not display information about transactions outside their company. This means that you are betting on quotes, which are usually real. This trade is available to few, as it is expensive. Such opportunities are provided by some large banks and a small number of investment firms. Nevertheless, brokers give to earn and withdraw profit. The fact is that the percentage of successful traders is very small and most only lose money.

Trading is a long work on yourself, your knowledge and gaining experience. This is not one book read or a couple of articles, but years of theory and practice. It is important to know about other things that can harm your wallet. For example, calls to managers, paid tuition and trading signals from dubious individuals. There is no ideal system and strategy, otherwise everyone would be millionaires. Based on this, if you start to impose something and promise that you will quickly make a lot of money on this, it is better to immediately give up.

Stock market

A more prestigious place to trade is the stock exchange. The principles of working on it are slightly different than on Forex or with binary options. Here is the real trade: the purchase of shares of various enterprises, the expectation of growth in the value of securities and the subsequent sale. Of course, such exchanges are regulated much more seriously than simple forex brokers. An example of such a site is MICEX. Moscow Exchange is the largest organization recognized by investors from all over the world. Reports on the state of the MICEX market often flash in the news, they can be seen on many channels, as well as in major publications on the Internet.

Where to start

With learning, but better to do it yourself. Search forums, read articles and special literature. Better do not buy anything, the best information is free. The one who sells his strategy, most likely, does not trade in it, but earns by providing dubious information. Study different types of analysis, namely technical and fundamental. Practice on demo accounts, the benefit of almost all brokers give this opportunity. Demo accounts allow you to work with graphs without real costs. The ideal option for a beginner, where you can work out trading strategies and apply the theoretical knowledge gained in the process of independent learning. You should also look for trading forums where more experienced investors share information with newbies. There you will find many articles, trading strategies and useful books.

Technical analysis

This is the basis of intraday trading, which means trading within one day. Technical analysis is an ideal tool for short-term forecasting of market behavior, such as the exchange rate for the next few hours or even minutes. It is necessary in order to work on Forex and binary options. Its basis is the charts and their patterns, which the trader determines as part of his trading strategy. This helps to make a correct forecast and open a position in accordance with the results of the analysis.

Fundamental analysis

This type of forecasting is best used for long-term investment. For example, to buy stocks for sale at a higher price. It is based on the news, speeches of the heads of central banks of various countries, as well as economic reporting. Such data is available and updated daily, but the most significant events occur much less frequently, for example, once a month or six months. The stronger the event, the higher the volatility. This term refers to the strength of the price impulse, how much the price fluctuates. Sometimes fundamental analysis contradicts technical analysis, which is quite commonplace. In this case, experienced traders suspend their trading or rely on intuition, which is quite risky. For adequate trading, a trader will need to study two types of analysis, as well as the accumulation of experience and his own trading style.

Trading reviews has conflicting. In general, they can be divided into two large groups, and both will ultimately be wrong. You can hear thousands of stories about dizzying success. Like the fact that a person quit his job, he accidentally stumbled upon the website of a brokerage firm and suddenly became a millionaire. This is complete nonsense, it is unlikely that someone will lead to this. The second option from a variety of reviews will be angry comments that the whole sphere is a hoax, that this is impossible, that people have been deceived. However, this is only skepticism and distrust, because most brokers work quite honestly for themselves, and people themselves lose money due to inexperience, due to lack of knowledge and excessive excitement. Adequate reviews are not so many, they are, as a rule, on the above described trading communities, where people share experiences, describe the most favorable conditions of specific brokers and keep records of fraud companies.

Conclusion

Now if someone asks you: “Trading is what is it?”, Then you can answer this question. This area flourishes and develops. Perhaps right now you are registering a demo account or starting to look for additional information about this case. You should treat trading with all seriousness, because this is not a game and not a gambling casino, but serious work that requires a responsible approach. Training can take a very long time, however, the results will be appropriate.

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