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What you should know about trading

Trading on the stock market has become a competition

FrayMS
FrayMS
8 min read
What you have to know

Trading has been sounding gradually on the internet for many years, expanding to what it is today, but the market has been created for a long time. It is recorded that the first time a form of trading was carried out was in the year 1700.

This also constituted what was the creation of the stock market or the stock market, an activity that is used by the largest financial institutions in the world on a daily basis, obtaining millionaire profits.

Determine what trading is, it is simple, it is the purchase and sale of the listed or most attractive assets in the international market. This normally occurs with the movement of the investing masses towards a particular currency or entity.

It's not just saving or throwing away points at random

What is done in trading

His term refers to the market, but "What market?"

The stock market, one that consists of all activity originating from or driven by the stock market. So, specifically named, trading is a stock exchange carried out on a social platform.

In this aspect, speculation takes action, because it is the action that is most carried out while trading, someone who happens to enter this world becomes a speculator on the movements of the participating markets.

In addition, these members of this activity or platform are kept to enter purchase and sale orders of the most profitable activities, such as, for example, the shares of a company.

Traders is the word that defines these members.

And another point that is important to note is that there is a lot of talk about the safety of investing in something like this, but since it is a regulated market, the certainty that transactions are safe in this way is a very high percentage.

Companies are the actors that participate the most in trading, coming from the stock market.

A trader must be aware of every variation that the market has

Traders and their working methods

These trading followers are the ones who normally carry out the most activity within the markets, as most of them live entirely at the expense of this trading platform.

They play a lot with what is the volatility of what trading represents, taking a practice to the extreme of calling it a bet.

An investor is not the same as a trader, since the former invests in a safe or more relaxed way, not having too much knowledge about something beyond speculation, without a direct methodology.

On the other hand, those who specialize and call themselves traders, take very large investment risks, relying on the results of their statistics that may have taken a long time to perform.

And it is that they work on their own account or as a type of bridge that they create between a client and this popular market.

Trading is not a temporary thing for many people, as many believe.

The traders who earn the most in this market are those employed by a banking entity, you can also find other types of these practitioners who work within investment funds or another financial entity.

The most prepared and presented by a company that endorses its knowledge, can be classified by various types of trading such as: scalpers, Day traders, swing traders and position traders.

A brain trained in finance

They use various types of technical analysis to speculate in the market, such as fundamental, strategic, macroeconomic and quantitative analysis. It is not just thinking randomly and generating a shot at luck.

Normally these individuals have training in social and economic sciences such as: administration, psychology, engineering, accounting, among others. Along with a good study of mathematics and statistics.

If you think the profile fits you, you could adapt even more to this market and test yourself as an investor before, of course, trying to be a trader.

List of steps to follow

Recommendations that they should give you if you want to start as a Trader

Not everyone knows how it operates or what trading is, when entering the platform, that is why it shows variants of stories that have ended badly, due to losses of currency or money.

So we recommend you take it easy, and always investigate the company, entity or platform where you are thinking of placing your capital, or just money.

Remember that the main rule that you should set yourself is not to use money that you really need for your daily life.

Don't just risk losing everything by trying to become a "millionaire".

Trading does not work this way, although most traders seek to operate in the markets in a short term that can take a few seconds, but that does not mean that they become millionaires at that moment.

The trader must keep a balance of speculation

Speculation turned into an art

This activity of speculating on whether shares go down or up is something beyond common sense, which is formed by a person through the subsequent knowledge they have on a particular subject.

If you have no idea of the company or currency you are speculating on and real assets are at stake, get out of there quickly, it is most likely not a good end to the transaction.

And take the study seriously, because it is that learning that will make you have a much more reliable way of speculation. Chance is not a good option for investments.

Losing a large investment is very strong for anyone, so if you want to start in this market, try to love what you learn to make a good transaction or exchange within the platform.

Speculating is an art that does not fall from the sky, although it does assume that some people are born with a natural talent for this.

It should be clarified that we are not saying that you must necessarily be a purist of the economy to enter trading, but you must handle it in a good way and understand it in the best possible way.

The different activities that a trader seeks to carry out

Different ways of trading

This financial activity not only seizes a modality followed to the letter, it branches into various times, people, and transactions, which are made up of the following types:

Day trading: is that transaction or operation that does not usually take more than one day. What specifies that when the operation completes, it closes.

Scalping trading: This is even faster than the previous branch, it usually takes a few minutes, even in seconds it can be settled. For such a fast action you need a good liquid market, so in this way, Forex Trading enters.

That, which is called the currency market, where any type of currency is exchanged in a virtual and decentralized way.

Swing trading graphic description

Swing trading: on the contrary, it is much more leisurely and calm than the previous types, it is a medium-term transaction, which can normally last up to a limit of 10 days from when it started.

Social Trading: The latter is the newest of these classifications. It consists of the connection of a community through social networks where more experienced traders share methodology with traders who are starting in the business of this market.

The transition that the activity has taken is undoubtedly the most difficult so far

Trading Evolution

We all know the fanaticism that cryptocurrencies have generated in recent years. It has been totally incandescent, which is why cryptocurrency trading is an option for many today.

With the action of the masses it will not matter what they talk about a token or its price, but what happens.

The ability to take a sell or buy position, in a financial sense according to the price of a cryptocurrency or its currency counterpart is what a cryptocurrency trader technically does.

Cryptocurrency trading

But being such a volatile market, it is an evolution that has generated many more losses than gains, even for people who know economics. Because this market is not to be trusted at all.

It is not the same as the economy of a country or shares in the stock market, each of these variations has its art. And we hope you can take advantage of some of these curiosities and tips to grow in this world.

First, remember that everything is in perseverance, but leave large investments to where you are more specialized on the subject.

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