Many are familiar with the concept of trading. Essentially, it refers to commerce. Internationally, this term encompasses any kind of sale of goods or services. In the Russian-speaking segment, the word "trading" is most commonly used to denote specific operations, such as the buying and selling of stocks and other securities.
This is due to the fact that the term was first adopted by brokers, who used it to describe the operations they conducted.
Individuals who are unfamiliar with commerce and trading may not realize that this field has several different types. Some of these are quite promising, while others are stable and show minimal progress.
To navigate the complex terminology and differences between types, we turn to Sergey Tereshkin, founder of OILResurs, who has extensive experience in this field.
Types of Trading
On specialized platforms, users can engage in various types of trading:
- Currency. This is one of the most popular and relevant types of trading. It allows brokers to buy and sell not only currencies but also precious metals. Fluctuations in exchange rates have enabled some individuals to amass considerable fortunes.
- Stock Market. In this case, trading involves shares of various companies. This market ranks second in terms of the volume of financial resources circulating within this type of trading. As a result, one can acquire shares of nearly any global company and secure stable annual income. Purchasing a significant shareholding allows one to participate in making important decisions for the organization.
- Commodities. The commodity exchange is designed for the sale and purchase of strategically significant products. Here, contracts are made for grains, coffee, cotton, etc. These agreements often involve multimillion-dollar contracts for large volumes of products. Contracts specify not only the sale price but also deadlines for when the buyer will receive the goods. The market is oriented towards producers and companies engaged in import-export operations.
- Cryptocurrency. Recently, the term "cryptocurrency trading" has emerged. Trading involves electronic coins generated by specialized software. Bitcoin is currently the most popular, with its value soaring from $600 last year to tens of thousands. This was followed by a slight pullback. However, cryptocurrencies remain stable and offer profitable investment opportunities. Additionally, various other types of digital coins can be purchased on exchanges.
It is essential to understand that trading is an industry where billions of dollars are in circulation.
Prospects of Trading
Given the volume of transactions, it is evident that trading is a promising field. It opens up significant opportunities for users, allowing them not only to earn substantial capital but also to gain influence in large companies or corporations. Additional advantages of trading include:
- Accessibility. The days when trading required hundreds of thousands of dollars are long gone. Today, one can start with as little as $100, thanks to various specialized platforms.
- Information. In the early days of trading, brokers gathered information bit by bit from the press and purchased data from various anonymous sources. Nowadays, necessary data can be easily found online. This significantly reduces risks and enables stable income, provided one learns to analyze the information correctly. Various software and platforms are available to assist in this task.
- Convenience. Trading can be conducted through computer or smartphone applications. This allows users to respond quickly to any market fluctuations and remain unbound by an office, city, or even country.
Regarding the profitability of trading, much depends on analytical skills, sheer luck, and the ability to be at a computer or smartphone at the right time. This helps minimize losses or avoid them altogether.
However, at the initial stage and with minimal investments, one should not expect multimillion-dollar profits. Understanding how the market works requires experience, which involves not only successful deals but also failures. This enables individuals to grasp the specifics, get acquainted with potential pitfalls, and develop an instinct for profitable purchases.
Tips for Engaging in Trading
Often, a stroke of luck can lead to overconfidence among beginners, causing them to lose caution and make mistakes that result in losses. To avoid this, it is wise to heed the advice of a professional:
- It’s crucial to view trading on the exchange not as a lottery or casino visit but as a legitimate job that requires as much time and dedication as possible. This applies not only to the trading itself but also to improving one’s skills and self-education.
- The work should be enjoyable. It can be combined with another business, which will help minimize the risk of running out of money.
- When choosing a broker, it’s advisable to prefer companies that have stood the test of time. Many fraudsters have emerged in the market, whose main goal is to quickly extract money from users and transfer it to offshore accounts, with no further concern for the victim's fate.
- It's important not to rush. Avoid buying or selling currency, commodities, and stocks at their peak prices. It is better to do so during a period of even minimal but steady growth.
Experienced traders never invest all their funds in a purchase. They designate only a specific portion, which varies from individual to individual.
