Trading Part 1
Reading Habr, noticed that occasional articles about the game on the stock market slip from time to time. Since my work is tightly connected with this issue, and I decided to write a test article on this topic for Habr, it may be useful for readers and will help to clarify a little how things are going in this area.
If you ever thought about what to try, what is the exchange, if quanta of the information field of the exchange subjects leave a mark on the grid of your perception, you will certainly be bombed by all sorts of interested sources and confused with messages about how easy it is to trade on the exchange. How easy it is to buy cheap (stocks, currencies, etc.) and selling them to earn money, without leaving your home in 2 clicks, you will draw all sorts of beautiful charts for many hundreds of thousands of thousands of percent of income. Their goal is to draw you into this pool through your office and charge you a commission for transactions (for the spread), get a free loan in the form of your funds in the account for your own operations. Your welfare does not bother them, no matter how they say they want to help you increase your capital. In general, you should not believe someone who says that his goal is to increase your capital.
If you still got into a state in which the thought that you need to try it does not give you peace of mind, first of all, you need to decide what for? If for education / entertainment / satisfaction of curiosity - you can safely allocate a small amount for this toy and drive, for example, one share of Gazprom, or a lot of eurodollar, but remember: at a certain stage, excitement can seize you and demand to bring more money to this furnace. Not sure if you can stop? Then it is better not to start.
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Another situation when the exchange is considered as a tool for additional earnings. For example, you accumulate capital for a serious purchase (apartments, cars, etc.), and simply, your capital accumulates, and the thought that “money must work” does not give you peace of mind. One thing must be understood: how much are you willing to play with risk? I must say risk is not some kind of imperceptible thing that can happen to your money if you are very unlucky. Risk is the real chance of losing money. For some reason, this truth is realized only after the first losses. If you have a plan for accumulating capital for a certain period, and you are not ready to put up with what is possible, your actions will lead to the fact that these plans will move significantly in time - it is better not to start, but to open a deposit in a bank.
Suppose you understand the risk, and are consciously ready to take it, playing on your capital. Remember, in nature there is no free money. All who are on the other side came to the exchange for the same, among them there are many professional players with great experience and size of capital. Ask yourself, what are your advantages over them? The next question to ask yourself is how are you going to trade? Will this be your main occupation, or are you planning to combine work on the exchange (trading) with your main work? How will you make deals in the second case? I do not deny that this is possible, but these two classes will definitely interfere with each other.
Suppose you choose the first option. Are you going to learn the profession of a trader and want to receive income only from stock trading? Is it possible? Yes, perhaps, but remember that this is one of the most difficult types of business. You will probably have to go a long way, go through a lot of losses, before you start to make more or less stable trading (if it happens at all). And one more thing to remember: no matter how professional a trader would be, it does not save him from losses and mistakes. If you thought that certain experience and knowledge in trading will give you stable prosperity - think about the people who have been involved in investment activities in famous American banks with a long history, with the bankruptcy of which began the 2008 financial crisis. It is unlikely that there worked incompetent people.
Continuation here
If you ever thought about what to try, what is the exchange, if quanta of the information field of the exchange subjects leave a mark on the grid of your perception, you will certainly be bombed by all sorts of interested sources and confused with messages about how easy it is to trade on the exchange. How easy it is to buy cheap (stocks, currencies, etc.) and selling them to earn money, without leaving your home in 2 clicks, you will draw all sorts of beautiful charts for many hundreds of thousands of thousands of percent of income. Their goal is to draw you into this pool through your office and charge you a commission for transactions (for the spread), get a free loan in the form of your funds in the account for your own operations. Your welfare does not bother them, no matter how they say they want to help you increase your capital. In general, you should not believe someone who says that his goal is to increase your capital.
If you still got into a state in which the thought that you need to try it does not give you peace of mind, first of all, you need to decide what for? If for education / entertainment / satisfaction of curiosity - you can safely allocate a small amount for this toy and drive, for example, one share of Gazprom, or a lot of eurodollar, but remember: at a certain stage, excitement can seize you and demand to bring more money to this furnace. Not sure if you can stop? Then it is better not to start.
')
Another situation when the exchange is considered as a tool for additional earnings. For example, you accumulate capital for a serious purchase (apartments, cars, etc.), and simply, your capital accumulates, and the thought that “money must work” does not give you peace of mind. One thing must be understood: how much are you willing to play with risk? I must say risk is not some kind of imperceptible thing that can happen to your money if you are very unlucky. Risk is the real chance of losing money. For some reason, this truth is realized only after the first losses. If you have a plan for accumulating capital for a certain period, and you are not ready to put up with what is possible, your actions will lead to the fact that these plans will move significantly in time - it is better not to start, but to open a deposit in a bank.
Suppose you understand the risk, and are consciously ready to take it, playing on your capital. Remember, in nature there is no free money. All who are on the other side came to the exchange for the same, among them there are many professional players with great experience and size of capital. Ask yourself, what are your advantages over them? The next question to ask yourself is how are you going to trade? Will this be your main occupation, or are you planning to combine work on the exchange (trading) with your main work? How will you make deals in the second case? I do not deny that this is possible, but these two classes will definitely interfere with each other.
Suppose you choose the first option. Are you going to learn the profession of a trader and want to receive income only from stock trading? Is it possible? Yes, perhaps, but remember that this is one of the most difficult types of business. You will probably have to go a long way, go through a lot of losses, before you start to make more or less stable trading (if it happens at all). And one more thing to remember: no matter how professional a trader would be, it does not save him from losses and mistakes. If you thought that certain experience and knowledge in trading will give you stable prosperity - think about the people who have been involved in investment activities in famous American banks with a long history, with the bankruptcy of which began the 2008 financial crisis. It is unlikely that there worked incompetent people.
Continuation here
Source: https://habr.com/ru/post/84250/
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