What is the word trade (treid, trade, trade-in, Trading, trading ) meaning ? – traders trading

Trading is what?

Activity, carried out for the purpose of making good money. This kind of work is done by people on special exchanges.. The participants of these auctions are called traders. In most cases, people play on such exchanges., who have money to invest.
Who is trading?
For example, a person has a good job or a successful business. He adequately provides for his family., at the same time he has savings or free funds, that can be invested in some profitable business. Take it to the bank at interest? Now is such a time, that any bank can suddenly go bankrupt, and if not, then inflation will eat up a small percentage, which does not encourage trusting such financial institutions in a crisis. Keep safe at home?Start building your own startup? Invest in real estate? These are often dead ends., having disadvantages - it takes a lot of money (buying a property), then a lot of time - your own business ... and serious risks.

What is trading for??

earnings. It's an activity., as a result of which you can multiply your financial resources many times over. Act, certainly, you need to skillfully - fools with money will not survive there.

There are two options – trade on your own or give money to management. Money in management - in fact, the same risks - which specialist will get, and not a "kitchen" is your brokerage company.
After all, a trader, essentially ,- ordinary merchant. the same, what buys cheaper and sells more expensive. But since trading is trading on the stock exchange, without direct agreement with the client, the task becomes more difficult. The trader conducts a constant analysis of the value of the goods, which today, according to forecasts, should sell well, find a way to invest as little money as possible in this product and get the maximum amount of profit after the sale by the end of the given period.

However, for those, who is at least a little familiar with the stock exchanges, it's no longer a secret, what trading - work, which is increasingly penetrating the network And, like a computer, will soon be in every home. After all, through the Internet, access to the exchange is carried out, what allows any experienced Internet user to try himself in this area.
Previously, access to a closed trading network could be obtained through brokers, That, in its turn, opened it only on request and, naturally, for good money. Of course, financial trading for normal people was something unattainable. Brokers played mostly for high stakes or were useless (profitability went down, if the profit from the long-term trade was less than 15 one thousand dollars). So there was a need for traders. They invest their savings in that product, which they deem necessary. The trader himself determines the time period, in which he will trade, and he will take his profit. No Mediation, apart from the stock exchange.

Required Skills

so, what a trader needs? Good theoretical basis. Knowledge of trading rules. Trading algorithm. Understanding, how does the stock exchange work. Ability to plan. Accumulated capital. Constant analysis of transactions on the stock exchange. You need to keep statistics of your transactions and notice your mistakes. Develop new trading strategies.

Nowadays, there is convenient access to many exchanges through the World Wide Web.. This provides more efficient monitoring of prices and turnover., opens up new opportunities for novice traders and simply colossal for professionals. Since the main tool of a trader is technical and fundamental analysis, the Internet is the best environment for timely collection of information and prompt forecasting of charts, necessary to accurately determine goods and prices.

Analysis, in its turn, needed for the most profitable investment and the subsequent extraction of maximum profit. And only online trading is an opportunity to make a profit remotely and in the shortest possible time..

For example, if Europe imposes sanctions on the import of agricultural products into Russia tomorrow, it means there will be a shortage of this product in Russia. What does this mean? That, what if the trader immediately invests in the agricultural industry, prices in which have not yet had time to soar, then tomorrow, when they rise, he will get his profit. What had to be done? Follow the news, enable logic, have free funds and respond quickly to the exchange. That's all the work, and internet trading is a versatile tool, after all, it was in the network that effective trading became possible, the complex procedures that so intimidated early brokers before it existed online.

Trading types

There are several. Let's analyze each of them in detail..

The first type is financial trading.

This is a type of stock trading., where they work exclusively with securities or shares. Because the price is driven by demand, it will not be difficult for a competent trader to determine, what is better to buy or sell at the moment.

For example, if the demand for the shares of one firm increases, clear, that prices will go up soon., the main thing is to catch this connection. The trader takes matters into his own hands and buys as many, how much can a loan at the current, not yet raised price. And it turns out, that net profit will fall into his hands - the difference between tomorrow's and today's price. So, he sold shares, in fact, not having them. He just bet on his analysis. Might as well lose, and stay in debt. This is financial trading.. Many, I guess, have seen films many times, in which detractors of certain brokers or traders specifically, at a loss, they "break" the forecasts of such traders, to leave them in debt. Sometimes it happens.

The second type is high frequency (algorithmic) Trading.

It's trading, computer-assisted, which carry out millions of computational actions per second and, on the basis of these operations, independently carry out all transactions for the purchase and sale of securities. Analysts say, that this type of trading stabilizes the use of markets and reduces the cost of goods turnover. But this method has a lot of cons. High-frequency trading is focused on short-term, even second operations, bringing profits so insignificant and working on small trade, that this has repeatedly led to the collapse of the markets.

The third type - "Forex" - trading or playing on the foreign exchange market.

After America moved away from a stable change in the price of the currency, there was an opportunity to earn good money on it. Still would, because its cost can "float" in the range of four percent during the day. Then the world communities, under the guise of everyone, created an international monetary system., with the help of which it became possible to earn on the money itself. Nothing complicated. You know, what if a year ago they had a bunch of dollars, you should definitely sell them now, when they cost twice as much. Traders know it too. Furthermore, they can make money on it within seconds, betting on a specific currency, based on their assumptions about, that the demand for this currency is about to rise, and it will rise in price, after which it can be sold profitably. That's why today "Forex" -trading is a powerful system for making money for many Internet users and people, who trust them to manage their money for profit.

There are some nuances here.. Firstly, Forex levels can float by a couple of cents due to a large number of applications and different brokers. Because Forex trading is more difficult, than in the calmer Russian and European market.

Secondly, large movements on currency pairs occur less frequently, how, for example, on US stocks. The third nuance - thanks to the developed leverage system on Forex, you can come with a minimum deposit, and trade, literally starting with 100 Dollars.