What you need to know about trading
Buying and selling products can be something most fascinating. This is something that different circles of people know very well, such as collectors, for example.
The fact that you make an investment, that you buy something in particular, then be able to resell it and make a substantial profit, is an art. And, in turn, it is an art that traders have been perfecting over the years.
Today, the different financial markets around the world have grown, not only due to the appearance of the internet and the different media; but because different incentives have also been presented in the last two decades so that people can enter these same financial markets and become a trader. But as romantic as the term or activity may seem, being a trader is not easy.
Given the latter, we have taken the time to explain a little about what trading is and how it works, so that you can get a better idea of the whole thing, and so you can decide whether you want to become a trader or not. , since as you will see later, it can be quite a complex activity.
What is trading?
When we talk about trading, referring specifically to the term that is known within the stock markets, we refer to the activity that implies the speculation of different financial instruments in order to receive a profit, often at the cost of an investment.
But, as with any other type of activity that takes place in financial media, trading can be a bit complicated, since you need some training or at least have a basic idea of how the different financial strategies work.
And, as such, a trader is based on what is technical analysis, fundamental analysis, and combine both through the application of a good strategy to make money.
All those people who have trading as their primary profession are known as traders, and although you don’t really need a university degree to be a trader, which can lead you to work independently, it is possible to see different traders operating within different investment funds, banks, and different financial entities.
Trading and Forex
Although, it should be clarified that the job of a trader is a very different one from that of an investor, since the latter usually seeks to obtain long-term profits, while a trader can have a multitude of functions in a financial field, such as it can be the intermediary, speculator, arbitrageur or even acting as a hedge operator, with the sole purpose of being able to obtain a profit.
Likewise, when we talk about the training of a trader, if he has a professional training; We can see that these have a good base in what is economics, administration, accounting, psychology, and even engineering.
All this, based on an excellent knowledge of mathematics and statistics, which really comes in handy as a determining factor in a financial environment. So, in essence, the traders can have a great amount of variety in terms of tools and knowledge.