It is part of our nature as human beings to give free rein to our curiosity in the search for alternative ways to make money. Trading is undoubtedly one of the most mysterious and interesting ways to do so, given everything it entails: international connections, risk, and the possibility of earning large sums of money in a very short time. To access this world, trading brokers are essential, as they act as the gateway to the market. But what exactly is trading?
As the director of a digital agency, I inevitably come into contact with entrepreneurs and investors who are in the process of training, executing, or searching for new collaborative forms of trading. This is even more so these days, due to the stifling paralysis of our traditional local economy. But is trading a truly viable alternative? What does it take to get started? Without further ado, let’s begin:
It is the act of buying and selling assets and securities. These can be currencies, stocks, cryptocurrencies, or other forms of value standardized in the market.
This is someone who is trained and disciplined in buying and selling assets. This is very important, because it makes the difference between gambling with money and being a professional in managing it in the market.
There are four levels of trader quality, according to their training, discipline, and experience:
• Novice: unfamiliar with techniques and with little experience: wastes time and money. Novices make up 95% of the trading community.
• Educated novice: with the knowledge acquired, they are able to enter and maintain a balance between gains and losses. They have not yet mastered the risk/reward ratio. They make up 3% of the trading community.
• Professional Trader: a trained and disciplined trader who makes decisions by estimating the risk/reward ratio as one of several decision criteria.
• Experienced Trader: as the name suggests, a professional trader with years of experience sufficient to have applied every theory and strategy studied, recognizing the situations in which each of the decision criteria is applicable.
If you are interested in professional training without leaving your home, but you are not 100% sure that trading is what you are looking for, I recommend a basic course to get you started:
Traders access the market through several layers:
• Trading brokers: This is the bank, company, organization, or network of traders through which market transactions are accessed—e.g., PEPERSTONE. Generally, trading brokers provide access to the main platforms for accessing the Electronic Communication Network (ECN).
• Platform: All trading brokers require an ECN access platform. Some of them are:
• TRADING VIEW
• METATRADER 4
• TRADESTATION
• FUSION TRADING
According to Mark Douglas, it is possible to trade based primarily on the risk-reward ratio. There are also strategies based on the analysis of patterns and chronological trend lines. Whichever concept you apply, the main recommendation is to leverage the knowledge and experience of successful and experienced traders to minimize mistakes and financial losses. There are various 100% virtual training courses and seminars that can help you achieve your goal of understanding the role of trading brokers and how the market works.
