Today we will talk about what trading is, how much the people who do it earn, and whether it makes sense to try. So what is the profession of people XXI century?
What is trading?
In order to answer this question, you must first understand the concepts. What is online trading? This is a transaction through the Internet with all types of assets. These can be options (we will talk about them below), bonds, stocks, futures, etc. Work takes place on various exchanges. In Russia, the Forex exchange is currently the most popular. To earn money, specialists use special software.
What are the benefits of this type of earnings? This is speed, convenience and the ability to experiment with strategies. A great advantage, as well as a big disadvantage, is that you can gain a lot and lose a lot. For many people who were engaged in trading thoroughly, it became the basis for opening their own business. And the matter is not only in the money that they managed to earn, but also in experience. A person who has learned to get a stable and high income on the exchange will definitely achieve success in business. The positive aspects of this work include the fact that when you exit the exchange you do not have to draw up any documents. Of course, they will be needed when registering, opening an account, etc., but the way out will be very simple. An important advantage is that a person can in real time monitor their income, market situation, movement of funds and trading positions.
As for the shortcomings, the biggest of them is the opportunity to burn out. But this can also be avoided if you act carefully at the initial stages and not risk large sums. Despite the speed of work and its technical convenience, it will require a lot of time.
To achieve serious success, you will have to spend a lot of time at the computer, delving into all the subtleties. Consideration should be given to interactivity. On the one hand, this is a merit of a trader’s work, but, on the other hand, there may simply not be an Internet connection at one point. And this can happen at the most inopportune time, when much will be at stake. In this case, you can contact the broker by phone, but how to do this when working with foreign companies, when you need to transfer information promptly? We must not forget about psychological stability. After all, the work of a trader is a real rollercoaster.
Earnings principle
What are traders based on? In fact, the principle of operation is very simple. A person needs to buy any assets (securities, currency) when the price is minimal, and sell them when it is maximum or at least higher. The difference is the profit of the trader. To make a profit, it is very important to feel the fluctuations in the market and adapt to them, and this only comes with experience. This takes time and a lot of practice.A person who does this work professionally spends a lot of time on it to conduct an analysis. In many ways, the level of profit depends on its quality. It is very difficult for a beginner to use analytical methods. You can learn, but understanding the analysis data and being able to use it is more difficult. However, this does not mean that trading is unprofitable for ordinary people. If you delve into this matter, read the relevant literature, globally study the issue and learn from professionals, you can gradually reach a decent level. In addition, for beginners, there are virtual trading systems that themselves calculate the necessary indicators. They will not work for serious work, but for learning, they will become an ideal option.
Online trading systems
How much traders earn depends on what system they work on. To begin with, it’s worth understanding that the main function of any trading system is to have the ability to quickly obtain information, analyze and process it, and make transactions independently and quickly. The trading system allows you to view activity graphs, analyze them. For a trader, such a system is something akin to an office where you can find out all the necessary information about your affairs. It is very convenient that you can set specific tasks. For example, a trader has entered parameters for tracking the cost of Audio cars. And he asked that when the price went up, for example, he should be notified. In this case, the system will track the change in the price of cars and, if necessary, report the result. It may even seem to a beginner in business that a correctly chosen system of online trading is all that he needs in order to earn good money, but this is far from the case. Yes, such systems facilitate the work to a large extent, however, they only help the trader to make the right decision, but they don’t make it themselves. Always relying on technical data is very stupid. The most popular programs are Omega Research, Transaq, Meta Trader 5, Netinvestor MetaStock.
How much do traders earn?
The answer to this question is definitely quite difficult. Each person earns as much as he invests. And now we do not mean financial means, but time and knowledge that is spent on receiving additional education.
In order to answer the question, it is necessary to clarify something for yourself, namely, that the person’s earnings in this profession should not be measured in the usual equivalent, that is, money (as if it were dollars, rubles, hryvnias or euros). Earnings of a stock trader should be measured as a percentage. This is necessary for a more adequate assessment of your income. Very often people come into this business who simply saw an inscription in the subway saying that traders can earn from $ 100 a day without much effort. But these newcomers simply do not understand that the initial capital can be different. Making that kind of money by investing $ 10, $ 100, or $ 1,000 is two different things.
Some exchange traders try to evaluate their profits by eye. Let's say 300 points is a lot or a little? Professionally impossible to answer this question, since a lot depends on the trading system.
The profitability of a successful trader can be 100%, but in the same way he can get such a loss. Surveys show that the minimum earnings of a successful trader should fluctuate around 10-20%. I want to emphasize the word "minimal". This means that such a return should be in any case, even in the most unattractive scenario.
So what will be the answer? Unfortunately, there will not be an exact figure, since everything depends on the specific situation, and most often on psychological stability and the amount of invested capital. Some novice traders are gradually gaining momentum, learning to work “aground” to get more experience. Someone can immediately pull out a big jackpot, and someone - from the very first days get into big debts.
What affects profit?
Trader's school is an experience. Of course, it is possible and necessary to learn new things, to obtain knowledge from the outside, but in this matter, the main thing is practice. An experienced trader understands that his profit depends on a number of factors, and tries to take into account all of them. The first factor that has a huge impact on earning opportunities is market conditions. No one can predict in advance what the situation is. And even experienced analysts can only make forecasts with a greater or lesser share of probability. How to take this factor into account? Understand that there can be "fruitful" days and days of stagnation. In one day you can conclude several profitable deals, but then cook for a week. Here comes into force psychology. It is important not to quit doing business, but to continue, slowly increasing momentum and simply taking for granted the fact that the market situation is uncontrollable. The negative point is that you can never know in advance with what speed and volume the price will rise. Because of this, you can get different profits without even changing the basic conditions.
The second factor of influence is risk. He is and will always be. But his degree can be predicted and not go to too risky deals. It is important here not to chase a lot of money so that the "casino effect" does not turn out when a person simply cannot stop, believing that he is just lucky and spends all his savings.
However, traders act differently. Someone is ready to risk everything, putting at stake the most expensive. Someone calculates their interest to the last penny. Advising something about the choice of a particular strategy makes no sense. Both of them can be both winning and losing. But when working for oneself, the possibilities are wider. If the wallet allows, you can take risks as much as you like. If a person works for an investor, you have to reckon with his interests. And they can be very peculiar. And the third, most important factor is the personal qualities of a person. A lot depends on them. Here, as they say, there is either a "streak" or it is not there. But the matter is not only in it, it is also in how a person relates to his work. If for him it is an opportunity to get some money "for free", without understanding the essence of the matter, then a person will still receive small profits and losses. If the approach is professional, the person is calm, steady and reasonable, as well as patient, then his chances of success are greatly increased. It so happened that people greedy and stingy rarely achieve serious success in any way. They have to be content with crumbs.
Binary options
How much does a binary options trader earn? To begin with, we say that a binary option is an option that, when certain conditions are met, at a certain time makes a profit or nothing. It is a contract between the parties. It is possible to earn in this way, it is a fact, but the question is how much. However, here a person will face the same problems that we talked about above. It’s really possible to earn extra money once, but to get a stable income you have to sweat while studying the market. But it is worth remembering that it will not work to earn without risk. Since we decided at the beginning of the article to measure success as a percentage, we say: with a successful transaction, a person receives about 60% of the invested amount. With a loss, he loses about 85% of the money invested.
How to become a trader from scratch?
There are four development paths. The first one is learning everything alone. This is a very real path, many through self-education have achieved striking results. The rating of traders can confirm this. The second way is to take courses, seminars, training programs. It is complicated by the fact that you can spend a lot of time and money on pseudo-professionals, be disappointed and abandon trading. The third way is propp trading, which is suitable for those who already know how. It consists in the fact that you recruit a team and only control its work, without participating in it itself.The fourth way is an option to get a job in a financial company. There, by the way, you can find out how much traders earn. You will get the desired experience, communication with professionals and practice, but you will not completely depend on the income on the exchange. These are the four most common ways, following which you can become a successful trader.
Millionaires
There are enough millionaire traders around the world. Richard Dennis is very famous, who made a fortune of $ 400, estimated by experts at $ 200 million. Alexander Elder, a native of St. Petersburg, is known for having repeatedly crashed on the stock exchange, but still managed to succeed. He publishes books on stock trading, helping people avoid mistakes. Nicholas Darvas is a famous dancer who, having an initial capital of 36 thousand dollars, turned him into 2 million dollars in 18 months. Warren Edward Buffett is one of the most recognized and successful investors. In 2010, his fortune was estimated at 47 billion dollars. Eric Nyman, who lives in Kiev, is a professional financier and trader. In combination, he is also a doctor of economic sciences. He also made a fortune on the stock exchange and began to publish books describing his path to wealth.
Books
The statistics of traders suggests that to get real results, you need to invest knowledge. But where to get them? You can go to seminars from famous traders who give out a drop of information per visit, or you can learn yourself much faster and more efficiently. But in order to get really high-quality knowledge, you need to choose their sources correctly. To do this in the modern information world is extremely difficult. The topic of earning money on exchanges has been popular for a long time, and a lot of people use it, creating useless, uninformative and even frankly distorting real data resources and books. That is why books will be presented here for beginner traders that will really be useful and will be able to teach them new things.
Let's start with Victor Ilyin’s book, The Exchange at Your Fingertips. This is a book with which to begin acquaintance with trading. It will give an understanding of the stock market, the mechanism and principles of its work and structure. The author offers readers many subtleties for the development and successful work on the stock exchange. The presented material will not only allow you to master basic knowledge on the topic, but also learn how to increase your income.
For a more detailed study of the topic, it is worth reading a book by John J. Murphy entitled "Technical Analysis of Financial Markets". She is considered a recognized leader in technical analysis.
These are two basic books from which you need to start familiarizing yourself with this topic. There is also a Russian project, “Trader’s School,” which can help you get comfortable and learn among professionals. You can pay attention to the chats of traders, which are many in the vastness of the Web. It is worth noting that a trader in the Russian Federation - the work is not so common, but those who do this professionally become rich people.
What conclusions should be made?
For beginners in this matter, the conclusion is completely unpleasant. On the exchange, they will not earn their first million by doing nothing or having an input capital of $ 10. Even those who have them do not dare to dream of huge earnings on the exchange. These people know how luck is sometimes deceiving. Of course, many beginners are amazed by the fact that they can just be lucky, but you should not really count on it. After all, luck can turn its back.
One conclusion should be made: the more a trader invests, the more he can get. But no one will guarantee that he will definitely receive income. There are too many factors and they are too weighty to be able to predict the situation ahead.
However, there is good news: getting a stable and high income on the exchange is really possible. It is better not to listen to those who claim that this work is inconstancy. Yes, earnings will always fluctuate, but the limits of these fluctuations can be brought to a certain level.And it depends on the work of a person, his efforts and, of course, the money invested. The basic rule that guides experienced traders says that it will be more correct to get less, but better. Just on the stock exchange, this rule is most appropriate. You can also give advice to beginners: for starters, you should set yourself only one goal - to work stably. This is the main point to learn. And only after you master this skill, you can try to increase earnings.
Now we know how to become a trader from scratch. Here, as in any business, you need to work hard and learn new things. The market of traders is competitive, but there are few real professionals in it. That is why there is every chance to become the best. Traders' statistics show that many of them quit business halfway, but those who persevere achieve real success. The desired prosperity can only be achieved if one is persistent in this path and firmly advances towards one's goal. Trading is an opportunity for everyone to realize their potential, test their abilities and learn the modern way of earning.
