The word comes from the English trader to trade - trade. Those a person who is engaged in trade. Since this word is used in relation to the financial markets, it sells it in financial instruments - currency, stocks, futures, commodities and other assets. Anyone who participates in trading on financial markets can be called a financial trader.
It is the speculator who works in the securities market. Its main task - to get the best possible return on their resale. Thus, the trader is interested to buy them at the lowest price and sell at the maximum price.
Trader Occupation has been actively gaining wide popularity. For this reason, it can be considered a specialty of the XXI century. The presence of the computer, constant internet access and relatively little capital - that is, in principle, and all that has to be a trader.
People engaged in trading completely different professions, with different levels of education, with different interests and outlooks on life. All these people have one thing in common - an interest in trading in the financial markets.
What does a trader? Merchant Securities: stocks, bonds, futures. The essence of the operation - to buy as cheaply as possible and sell as dearly as possible, to maximize the capital, your own or a client. At first glance it may seem simple. But in order to work properly on the increase or decrease in prices in the financial market, it is necessary to understand the features of the stock market, charts, quotes, quickly analyze and predict future trends, to respond quickly to changes in exchange prices of shares, bonds ... And at the same time keep in mind the dozens transactions.
Sami traders say their work creative - it has no routine: market research, decision making, analysis of own results.
For many "players" Trading is not even work, and lifestyle. They analyzed 24 hours a day market. Time for anything else simply does not remain. Often, stock prices, charts, quotes they dream at night.
The whole point of the trader on the stock exchange is to ensure that they are buying the product that starts to rise in price, and sell the commodity, which begins to fall in price.
Most traders work on the Forex currency exchange. This is due to the fact that the Forex, there are DCs, where traders have the opportunity to work not with whole lots and lots with small stakes. The owners dealing centers do not act as intermediaries, brokers, and as foreign exchange dealers. Like a small exchange office in the bank. As a result, traders have the opportunity to work at Forex with small capitals. And it becomes available, even the average person with an average salary.
With the development of information technology and the widespread introduction of the Internet, financial exchanges, on which trades the vast majority of traders, have found their place in the World Wide Web. And at the same time trading is now available not only to the banks and the oligarchs, but also ordinary people, began to appear the first brokerage firms, and then - investment companies. Trading on the Internet is incredibly easy to use and no less profitable than working directly in the exchange building.
Thus, anyone to engage in trading in the financial markets can operate anywhere in the world, enough to have a laptop and a satellite or mobile internet. You do not need to be present in that region or city to start trading. You can trade, for example, with the Americans, while in Asia or with Asian, while in Europe. Exchange - a global concept, and it's incredibly cool!
Trader - it is usually fully developed personality with a wide range of interests. He always benefited even from losing trades, is constantly working on themselves - improving their identity. This is a man who is constantly learning to manage their emotions and feelings, and setting the trade rules are always clearly follow them. Trader - is, as a rule, calling for life.
Trading on financial markets - is not only prestigious, but extremely exciting. All it takes to become a trader and start trading - is a computer and the desire to make money.
Why do people become traders?
The only sure trader motive - a stable profit.
Members come to the financial market for the purpose of income and independence from employment. Held in life, people usually come to the stock exchange in order to manage their own savings. Many beginners may seem that the stock market and trading - it's easy money out of thin air, so try the easy money the taste sought by many, but not many are successful. Absolutely unconscious motives trader - is the excitement and the thrill of the hunt. In the end, many people forget that come into the market to get a steady income, and continue to trade in order to get a thrill. But very few people aware of this report.
Types of traders
Depending on exactly how the trades, a trader may intepritirovat it differently. The most common terms:
- Bulls - traders who buy one or another asset, hoping to sell more expensive, whether it be stocks, indices, precious metals, currency pairs, options, etc.
- Bears - merchants who sell assets or bearish price.
Why these animals have become symbols of the stock market? The bottom line is the method of production clogging the two predators. So, bulls tossed it in the air (the price goes up), and bears - knocked to the ground (the price goes down).
There are also less common species:
- Sheep - inexperienced traders who are afraid to buy an asset and miss most of the profits. As a rule, the sheep come into the market at the end of a trend, or when a trend is already beginning to change to the opposite (the price changes direction), because of what can suffer losses.
- Pigs - a greedy traders who often overdo their positions and do not have time to withdraw from the market trend changes, because of which also suffer losses.
- Hares - are traders scalpers, opening mainly over short-term deal. They hold a position just a few minutes to a few hours and try to profit from any minor fluctuations.
Also, there are other concepts that represent behaviors of individual traders to trade: sharks, wolves, and other precious and base animals. It may seem that the stock exchange on Wall Street - is one big zoo. However, in any profession has a professional slang, including traders. If you want to communicate with colleagues (traders) - you better know the meaning of all these words from time to time to apply them in a conversation.
Types of traders
Traders can be divided into basic criteria: by type of ownership and duration of transactions.
The form of property traders are professionals and independent traders.
Traders professionals - as a rule, traders who have received appropriate education, theoretical and practical trade skills. Most of these people have the ability to work with large financial institutions, banks or various analytical companies.
Basically, they sell not on the money, and money institutions or the client's money, for a certain percentage, and thus get quite good profit.
Independent traders - are traders who do not have appropriate education, sometimes trading for fun, but sometimes there are people who want to reach the level of professionals.
They trade, usually at their own expense, with no licensing. This type of trader is the most common on the market.
Also, there are traders who vary in length transactions. They are scalpers (scalpers), day traders, medium-term investors and long-term investors.
Scalper (scalper) - a person who trades in short periods of time, from a few seconds to a few minutes. Make profit pips movement that does not bring much profit in comparison with other types of traders.
Day trader - the trader, trading for the day. The duration of the opening positions can last from a few seconds, until the end of the trading day. Closes its position before the end of the trading session (day).
Medium-term investor - someone who keeps open its position from several days to several months. As a rule, these are people who have good experience in the trade, and trade on the personal funds.
Long-term investor - a person who enters into transactions several times a year. It speaks about the art market analysis and the ability to predict the movement of prices. Despite the global trend movement, and acts according to the movement of annual trends.
1. Clarity and legibility purposes. In trading, it is very important to be able to set clear objectives for themselves and persevere to achieve them.
2. Discipline is paramount. You need to learn to control himself, to act systematically, to trade solely on your trading plan.
3. You have to be very patient. This is perhaps the most important point in your trading strategy. It is important to be able to wait any number of ideal entry points, signals for opening transactions and not to rush to sign contracts only for gambling.
4. Believing in your success. It is necessary to pre-configure itself for victory, success, great earnings. Positive thinking is always a positive effect on your performance.
5. It is important to be able in time to adjust to the market and adjust its strategy.
6. Less emotion. Do not get too close to the heart to take any job, including trading.
7. Be independent of others' opinions. You need to learn how to work independently, regardless of others' opinions and arguments. Rather they should be taken into account, but in any case not blindly trust others' signals.
8. Ability to plan. Any action on your market - it should be part of your trading plan.
9. The presence of intuition. This quality is very valuable, and it does not have to be you since birth. Trading intuition often acquired during the experiment.
10. are concentrated. It is important to focus on specific strategies and hone it to the end. Instead of rushing from one scheme to another.
The way the trader
Thorny path and not easy becoming a trader. It is very difficult to achieve that with the help of trading was possible to live completely by becoming financially independent. Everyone runs to the trader himself. Each has his own, different time and eventful.
Only by starting to trade on the stock exchange, new trader immediately begins to learn all the wisdom of technical analysis. Start the search for a set of technical indicators, which provide him with 100% hit in each transaction.
Remember how you studied in great detail the wisdom of candlestick analysis. As a long time tried using different techniques and careful study charts predict the movement of the market ... But the market again and again you clicked on the nose, still inexorably eat your trading account. And here you are already on the verge of abandon its exchange trading forever, forget it as a nightmare.
And all of a sudden you start to drive incredibly ... Your account begins to grow every day. And you already begin to forget about their failed transactions, is experiencing a real euphoria and start to feel the exchange guru ... And here it is again all fall into place. The market quickly puts you in your place. You get a series of losing trades ...
Curb your pride! Remember, you're not as great as you think it is. And the market never let you forget it! Again, go losing trades and you're trying to figure out what you're doing wrong? Why suddenly the tide has turned against you? You're trying to compare your own profitable trading period with the current, and suddenly you realize that the market has changed dramatically. And now those trading rules that you used in a profitable period, suddenly became quite applicable in the current situation.
But you are again full of enthusiasm, you do not want to give up! You put in front of a great purpose - to find the holy grail of trading. Find whatever was in that! And again you shovel a huge amount of literature, constantly communicate with colleagues traders. You start again to earn a good market, but then again ... the market is changing and once you start to chase unprofitable transactions.
But you can not quit the trade! You already can not imagine life without it. The money on your account cease to be of value to you. You evaluate your success or failure is only a percentage of the bill. Loss trades constantly alternate with success. Then one day at the end of the year you notice that your account has not decreased, but even a very good up!
The first stage - is when a person out of curiosity or a desire to get a new profession begins to study the literature on forex, or come to study in the dealership called DC. Get some information, and most importantly, understanding where the trading terminal are buttons to open and close a position, starts trading. After spending some time on the market and losing a certain amount, or worked on a demo account without a positive result, a person begins to understand that nothing will work unsystematic but losses, and that you need a good trading system. This is a search of the "good" of the trading system and the second stage begins.
Man is always looking for the miracle of a system that will enable it to accurately determine when to open and close a position and display it in a positive trade balance. The second stage is a time-consuming step, during which the "shovels" a lot of literature, and all found trading systems practiced in action. At this stage, there is a significant number of screening, came in the Forex. And finally comes the third stage.
At this stage the novice trader realizes that one trading system does not solve anything but it still has to be a trading plan, and a clear implementation of which will bring success in the trade. Inspired by the discovery of a novice writes plan and in high spirits again starts trading. And here begins the amazing things. Logically, a novice trader knows all the actions that are required of it his trading plan, but in practice he does exactly the opposite, trading plan requires him to close loss-making position, but he did not close, waiting, with the result that the losses are catastrophic or, on the contrary, too early fixes profits resulting losses start to dominate. There is a feeling that inside you there is "something" does not allow to carry out the plan. At this point, cease to overwhelming number of newcomers to the forex rainbow thoughts. Those who had the strength to stay, know that they need to change their mentality and learn to do is not something that you want, and what the situation requires. That is, learn to obey the mind, its common sense. This understanding and translates them to the fourth stage.
The fourth stage is the stage of improving the mind, the development of the internal of conditions that will adhere to the same strict discipline of his trading plan, as well as give an opportunity to survive in a constant psychological stress in the forex market. Up to reach this stage, not many, but will come down the main conclusion that success in trading depends on 90% of the psychological preparation of the trader and only 10% of the trading system. And this discovery will automatically enroll them in the fifth stage.
The fifth stage is the final in the preparation of novice trader, here he sees as a "come to life" and begin to make a profit trading system begins to feel confident ahead of the market and see the possibility of further earnings. The few that have reached this stage and have a real chance to make a living trading on the stock exchange.
Although below the trader's rule almost celebrating a century, they are still constantly quoted and applied in practice, modern traders. The reason for this longevity is explained himself as the great Jesse Livermore. According to him, on Wall Street, nothing changes over the years, because of speculation technique is as old as the entire monetary system; no matter how it seems now the new is happening in the market, when something has happened and, of course, happen in the future.
Thus, the original commandments of traders, or rules of the game in the forex, you can limit the following list:
- Perform trend trade: buy bulls should be on the market and sell at the market bears.
- In the absence of specific, obvious opportunities for trade is not necessary to enter the market.
- The trade actively use the main pivots.
- Patience - the main virtue of the trader. Wait until your predictions prove to be true, and only then join the market.
- Do not let the profit growth. If the transaction from the outset unprofitable, discard it as a good deal immediately generate revenue.
- Use a stop order, which must be determined before you enter the market.
- Cover those transactions that do not have a certain positive outlook, for example, when the trend is gradually weakens or disappears altogether.
- For each market using leading tools. For the bull market more profitable strong action for the bear - weak.
- Do not try to average losing positions.
- Do not wait until the broker or margin call, forced to close the position, bears no income themselves refuse from losing positions.
- Do not use too many market-based instruments at once.
As practice shows, it is not always possible to choose the ideal binary options broker, which according to its criteria exactly to fit your specific requirements. The thing is that some brokers may offer excellent conditions in the technical terms of trade…