With digitization, the way of trading securities also changed. For centuries, traders met on the trading floor and did their business face to face. On the London Stock Exchange, which has existed since 1571, buyers and sellers shouted their bids and offers in person. And in Wall Street, too, great fortunes were made and often lost through direct contact, telephone and fax. Today these stock exchanges are not completely orphaned, the Lion's share of the shops with stocks, commodities, precious metals and other modern financial products however, it is increasingly taking place electronically or online.
In contrast to Investorswhich usually long term want to build up and expand a fortune, concentrates Trader (Dealer) on the shorts. Positions are rarely held for more than a day. Usually the resale is instructed within an hour, minute or a few seconds. In a few moments, billions of dollars will be chased around the globe using various trading strategies. Often the obligatory push of a button is no longer required. The question now arises as to whether you can learn to trade stocks and what to watch out for!
Online trading increases sales and empties the trading floor (link)
How can you learn to trade?
As an official Apprenticeship the trader does not exist. And yet you can find countless offers on the Internet, often for a fee, which make it possible to access the Profession of trader prepare! A basic condition is the broadest possible knowledge about how the stock market workshow the price of a product is composed and developed. you will find comprehensive information on which conditions, expectations and requirements should be met in order to profitably invest large sums of money in real time, i.e. without a long period of reflection.
What is traded when trading?
Stocks are a trader's main product. Watch the market and try to buy and sell at the right moment. The professionals have a certain amount of intuition. But newbies also need a bit of luckif you as a trader bet on a certain share performance. In addition to the classic share, CFDs (contracts for difference) and forex trading are interesting for traders. With the former, you can bet on the price difference between a share in a certain period of time. Through leverage, overwhelming profits, but also horrific losses can be achieved. At the Forex trading is simply bet on the rise or fall of one currency in relation to another. In the end, for most of the financial products, the greater the chance of winning, the greater the risk of loss.
First steps to successful trading
Basically, a simple computer and stable internet access are sufficient to be supplied with the necessary hardware. In addition, you have to register with an online broker or a direct bank. Once this has been done, another is needed Securities account and a current account for the credits. Numerous providers provide depots. With these will be Funds, bonds and stocks bought and sold. Sometimes it is worthwhile to compare the offers, because each provider has its own table for basic fees, custody costs, expenses for the individual order and exchange fee.
You don't talk about explicit strategies when trading. Much more analyze shrewd traders the charts and try to reach positive decisions based on historical data and their interpretation. Trends, anomalies and patterns serve as an aid to them. However, intelligent traders develop their own strategies. Economists speak of two strands of stock market strategies. For one thing, you can follow the trend, therefore assumes a continuation of a trend and uses its capital accordingly. This is in contrast to the Momentum strategy. It is assumed here that prices often move sideways for a long period of time and then suddenly rise or fall. This momentum should be adjusted.
Trading is work, work and work again
Anyone who pursues the dream of getting rich from the sofa with an instruction on their mobile phone should say goodbye to the desire to pursue the profession of trader. The observation of the markets and the fluctuations in values are incumbent on innumerable processes, all of which have to be studied and interpreted. Especially with the short-term and highly speculative deals of trading are in addition to a high Willingness to take risks, good nerves and patience on extensive general knowledge as well as a nice pole capital necessary so that the first share purchase does not remain the last.