What is trading? In a simple sense, this is trading in the stock or foreign exchange market and making a profit on the price difference. Commodities can be currencies of different countries and securities. The platform for trading can be Forex or an exchange. To make a profit, you need to wait for the growth in value and only then sell the assets. In this case, the higher the price, the higher the income. Anyone can become a trader, but at first glance it looks simple.
Not everyone can increase their capital and not lose it. It is worth noting that to work in the market, you can use both your own capital and be a hired trader and manage other people’s assets. The first option assumes that you are fully independent in your decisions. But how to become an independent trader in 2023?
What markets should a beginner and an experienced trader start with?
Many people are interested in working as a trader, because it is a job with money that brings even more money. But it only seems so simple at first glance. Of course, thanks to modern tools, you can start trading with a small amount, building up your experience and capital in leaps and bounds. For a beginner, this is an ideal start before they have found and chosen their trading strategy. But how do you move on to more serious trading and get more profit?
First of all, you need to start by choosing the market you want to work with. In fact, the spread of markets for trading is also large: currency, stock, commodity and others. Each has its own specifics, tools and strategy. And whatever market you choose, it is important to remember one very important thing – do not trade without a plan and preparation. After that, you can choose the most suitable market.
Many traders tend to focus on one financial market such as stocks or CFDs. However, it is important to analyze all financial markets available for trading because they are interrelated and can have a significant impact on each other.
Trading in some financial markets is inherently more long-term, while others are more short-term. For example, the mortgage market has a large number of long-term loans, while the money markets are focused on the execution of contracts in a shorter time.
But this strategy is more suitable for experienced traders who have tried everything. For beginners, it is recommended to start focusing on one or, at most, two markets that are interconnected. In this case, it is worth trying the stock market as it is more stable and has good volatility.
Independent and home trader: advantages and disadvantages
A trader can work both independently and in a trading company. In any case, the career of a professional trader looks attractive. However, it is important to be aware of the risks it carries. A trader often operates with large amounts of money and can lose them. This is especially critical when borrowed funds are used for trading or a trader trades on behalf of an investor.
Employers are willing to pay traders from 500 to 5,000 dollars, depending on the duties performed and the capital with which they will have to work. This is a stable option that guarantees that you will definitely have money.
What about freelancers who work as self-employed traders, then their profit depends on them, but they are more independent in terms of decision-making and trust only themselves. Independent traders never deviate from their method or trading plan, based on the subjective opinions of others. They do not need additional external support in making trading decisions..
How much does a freelancer earn?
The amount of earnings of independent traders fluctuates and is largely dependent on the initial capital. For this reason, it makes no sense to consider the potential profit in absolute terms. A more accurate value is the percentage of profit. The most important factor influencing earnings is practical experience. But freelancers are the category that has learned to break even on the stock market and even earn a certain income. This is a trader with own account and his income amounts to several tens of thousands of dollars..
But in order to achieve such results, it is important to observe a few simple conditions:
- good start-up capital
- initial basic knowledge,
- knowledge of trading psychology.
Only in this case it is possible to speak about an accomplished trader. He receives solid income and knows how to control emotions and manage money.
A guide to becoming an independent trader
A trader is considered independent only when he does not take into account outside opinion and relies only on his own. Such a specialist does not need to look for proofs, since he is confident in his knowledge and skills. And if so, then he does not sort out strategies just because someone told him that the other is better.
The independent trader is also highly disciplined and doesn’t just give up. Instead, he tests his strategy several times to see if it’s working or not. Becoming an independent trader is easy and all you have to do is trust your own intuition. Everything depends only on you, so you should learn to make any decisions yourself. Here are a few simple steps to take in order to become an independent trader:
- Start relying only on yourself.
- Not listening to the crowd.
- Use only your strategy and do not abandon it.
If you still haven’t figured out how to become a trader, you just need to know yourself. This is the only way you will become an independent and independent trader. Additionally, start working with forex brokers, for example, DotBig.
What is the best trading?
Two trading methods are popular among traders, one of which is to buy assets at a low price and sell them at a higher one. It is due to the difference in prices that the trader makes a profit. This scheme is more classic and is most often used by many market players. The second scheme is more complex and not suitable for everyone, it is based on the conclusion of an agreement on the sale of an asset at the current, high price with delivery later. This method assumes that a trader buys an asset when its price falls, and then transfers it by agreement, having previously received a higher price for it.
All in all, trading is not a modern invention. Buying and selling goods has been practiced since ancient times, with the advent of the first money. And that’s when traders appeared. Today, trading just looks a little different and auxiliary tools are used for it. This is exactly what you can do when using the tools of the DotBig LTD broker. You can first buy any assets and then sell them on more favorable terms to large investors, and the broker DotBig will provide the necessary features for this.
With DotBig investments you get favorable conditions for cooperation, which are available not only for beginners, but also for experienced traders. If you want to become independent and make any trading decisions on your own, then start working with the platform and make a profit that exceeds your initial capital.