Who are traders?
A trader is a stock market speculator who makes a profit not from producing certain goods or services but from direct trading. Traders buy at a lower price and sell at a higher price or enter into contracts with each other to increase or decrease the cost of an asset. Speculation in developed capitalist countries is an entirely legal activity, and people from different social classes, from the lowest to the oligarchs of the Forbes chart, engage in speculation. At least, this is the case in the United States and developed European countries. As for the benefit of speculators, it is also present because they maintain actual demand for currency and stocks, prevent national banks from turning the market value as they wish, and in some cases, help entrepreneurs insure their risks. The latter happens when a businessman enters a futures contract with a speculator.
Today we will discuss the concept of trading and who a trader is. And if you are interested in gambling topics, such as betstarexch withdrawal time and the peculiarities of slot games, then we recommend paying attention to the review.
Table of Contents
Where does a trader work?
Traders can work in different places, be independent or hired by investment companies or brokers. I’m going to speak more about individual traders who work for themselves. They can trade in the following places:
- The stock exchange is the most traditional and, so far, standard option. Few people have yet to see it in action in movies, news or pictures on the Internet. But a stock exchange is not just a building on Wall Street filled to the brim with traders. The stock exchange is an abstract concept that refers to where securities are bought and sold or contracts (futures, options) are concluded. A person can access it directly from the exchange buildings in major business centres worldwide (London, Hong Kong, New York), via the Internet or through brokerage companies.
- When capitalism emerged, the first traders traded in stocks on the stock exchange, and the first American oligarchs who made their fortune in trading appeared. Studying the success stories of modern multibillionaires will be very instructive; you will be able to understand what heights professional and motivated traders can achieve.
- Later, the Forex market appeared, where large banks and investors traded currencies. Initially, only wealthy individuals and organizations were allowed to enter it, but now anyone can use the services of a Forex broker and trade online right from their computer.
Online trader: who is he, and what does he do?
With the development of information technology and the widespread use of the Internet, financial exchanges, where most traders trade, have found their place on the World Wide Web. At the same time, trading became available not only to oligarchs and banks but also to ordinary people, and the first brokers began to appear, followed by investment companies. Trading on the Internet is incredibly convenient and no less profitable than working directly in the exchange building.
You can work from anywhere worldwide with a laptop or mobile and satellite internet. You must not be in a particular region or city to start trading. You can trade, for example, with Americans while in Asia or with Australians while in Europe. The exchange is a global concept, and that’s great!
How much does a trader earn?
There is no exact answer because a trader is not an employee with a fixed salary; he is more like a businessman who may have one profit in one month and a completely different one in another.
To begin with, you should realize that there are traders and there are “traders”. The former trade competently and earn money, while the latter goes to the stock exchange to play without a trading strategy and any preparation, which is why they lose money.
The average trader can earn anywhere from $3,000 to $10,000 a month, but nobody can say for sure because this income can jump up and down. As for the maximum limit, contrary to the opinions of some analysts, it does exist. You may earn a million dollars on speculation but not a billion. Why? Because by trading such large sums, you will be influencing the market yourself, and where can you find a trader who will buy a billion dollars worth of currencies or stocks from you? That is why, as a rule, when a trader earns the first million dollars, they change jobs or become a wealthy or unemployed person. The first option is recommended for establishing your personality. In this case, you can spend the money on your business or a significant investment in shares of another company, land, real estate, and other assets. Robert Kiyosaki says that a secure life is only possible with passive income, and it’s hard to disagree. If money brings you profit without participation, you can devote yourself to any other project or live to your heart’s content.
What does it take to become a successful trader?
Knowledge and skills, experience, and even a trading strategy come first. The first thing in a trader’s life is their desire to succeed; without it, trading is doomed to failure. A stock speculator often goes through difficult periods in his life, and if he has no motivation to continue working no matter what, it is better not to go to the stock exchange. Trading is a non-standard job with a fixed salary; today, you can earn $100, and tomorrow you can make nothing. But you have to understand and believe that your strategy will bring income in the long run, and failures are part of the job, which will be replaced by success.
Think about who a trader is and what he does; you can already answer this question. Financial transactions are not toys, so you need to be prepared to succeed. This preparation consists in having basic knowledge about stock exchanges and trading strategies.
Only banks, brokers, or huge investors can afford to trade directly. For a mere mortal, you need the help of an intermediary. These intermediaries are financial brokers, who can be reliable or unreliable.