What is trade?
There is no doubt that the key word is trading, an activity with a very clear purpose, and we will give some initial advice. If you want to know what trading is, feel free to join us.
What is trading and how does it work?
Trading is a speculative activity on the stock market, this word has no negative meaning here, and the goal is to derive financial benefits from this activity. In other words, buying when prices are low and selling when prices are rising. It is this difference that allows us to make capital gains and in some cases make this activity a way to increase our income.
In order to trade, we need to follow the opening hours of different markets, as you can buy all kinds of shares, from commodities to currencies, the so-called Forex market. Contrary to the misleading and inaccurate images, trading requires a lot of discipline and knowledge, so if you make the effort to educate yourself, your chances of success are greater.
That doesn’t mean you won’t experience disappointments, it’s part of the learning process. There are different ways of trading, be it day trading, swing trading or trend trading, all tailored to a specific profile, so once you discover how the business works you can use one or the other type.
Why you shouldn’t trade
The title may catch your attention, because we’re really committed to giving anyone who wants access to the world of investing, but there are a few reasons why you shouldn’t trade, read carefully before you dive in.
Firstly, it requires constant attention. Trading is very different from making a purchase and forgetting to reap the rewards later. No, the time you devote to it should be exclusive and as concentrated as possible. This leads us to another reason why you shouldn’t shop, it can be psychologically devastating. Being in full control of your emotions and having nerves of steel are important factors in achieving our goals.
You can’t start with 10 euros, you will need more and you won’t be sure of the return. Therefore, it is always interesting to register with a broker that has a demo account before proceeding. This way you can trade with real value, but with fictitious money. This way you can get a realistic picture of how much you gain and how much you lose. Don’t doubt that you will lose money, it’s part of your journey as a trader in the beginning. Even those who have been at it for a long time lose.
Finally, trading involves a large investment of time spent practicing, studying charts, traveling the world, listening to expert opinions and spending time in front of the screen. If you are determined to go through all this, all you have to do is be strong and don’t let your strength falter, the results may be worth it.