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

Trading is what? Trading: Definition, Features and Feedback

Many see advertising and ask the question: "Trading is what?" Many people understand it in different ways. So, trading - what is it? The definition for this term is literally translated as trade. Indeed, this sphere implies the purchase and sale of something in any market. Nevertheless, not everything is so simple. Trading is primarily a lot of different tools and methods for performing operations. There are so many opportunities 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 in Forex or binary options. So it turned out that these tools are now the most common and in great demand. The very process of work is a forecasting of the price of currency pairs, for example, how many dollars will it cost one euro. The exchanges work with fractional numbers, and the number of decimal places can be quite large. This means that even small fluctuations in exchange rate differences can bring a trader profits or losses. The principle of trade is obvious, if the forecast is correct, then you will get profit, and vice versa. Services for entering the market, as a rule, are provided by a special company. Trading is possible without intermediaries, but this is more difficult, requires a lot of nuances. For independent work, you may need to register a legal entity, obtain a license, and rent 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 is being contacted. Most forex brokers do not display information about transactions outside their company. This means that you are betting on quotes, which, as a rule, are real. This trade is available to a few, as it requires a lot of money. Such opportunities are provided by some large banks and a small number of investment firms. Nevertheless, brokers give and earn profits. 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 the acquisition of experience. This is not one read a book 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, managers' calls, paid training and trading signals from dubious personalities. There is no ideal system and strategy, otherwise all would be millionaires. Proceeding from this, if you are beginning to impose something and promise that you will quickly make a lot of money on this, it is better to immediately refuse.

Stock market

A more prestigious place to trade is the stock exchange. The principles of work on it are slightly different than on "Forex" or with binary options. Here there is a real trade: the purchase of shares of various enterprises, the expectation of the growth of 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 the MICEX. The Moscow Stock Exchange is the largest organization that is recognized by investors from around the world. Summaries 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.

How to start

With training, but it's best to do it yourself. Look for forums, read articles and special literature. Better do not buy anything, the best information is free. Anyone who sells his strategy, most likely, does not trade it, but earns by providing questionable 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 charts without real costs. Ideal for a beginner, where you can work out trading strategies and apply the theoretical knowledge gained in the process of self-study. Also, you should look for the trader's forums, where more experienced investors share information with newcomers. 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, for example, 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 - the graphics and their patterns, which the trader defines as part of his trading strategy. This helps to make the right forecast and open a position in accordance with the results of the analysis.

Fundamental analysis

This type of forecasting is better to apply for long-term investment. For example, to buy shares for the purpose of selling at a higher price. It is based on news, speeches of heads of central banks of different countries, as well as on 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 means the strength of the price pulse, then, how much the price fluctuates. Sometimes fundamental analysis is contrary to technical analysis, which is quite common. In this case, experienced traders stop their trading or rely on intuition, which is risky enough. For an adequate trade a trader will need to study two types of analysis, as well as gaining experience and his own style of trading.

Trading reviews are contradictory. In general, they can be divided into two large groups, and both will eventually be wrong. You can hear thousands of stories about dizzying success. Type of the fact that a person quit his job accidentally stumbled upon a brokerage company's website and suddenly became a millionaire. This is complete nonsense, it is unlikely that someone will take it. The second option from the set of responses will be angry comments that the whole sphere is a fraud, that it is impossible, that people have been deceived. However, this is only skepticism and mistrust, because most brokers work quite honestly, and people themselves lose money by inexperience, due to lack of knowledge and excessive excitement. Adequate feedback is not so much, they are, as a rule, on the above-described trader communities where people share their experience, describe the most beneficial conditions of specific brokers and keep records of fraudulent firms.

Conclusion

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

Interesting: