There is no doubt that the buzzword is trading , an activity with a very clear objective and for which we are going to give you some introductory guidelines. If you need to know what trading consists of, do not hesitate to join us.
What is trading and how does it work?
They are speculative stock market operations, this word does not have a negative connotation here, and whose objective is to collect economic benefits from said operations. In other words, buy when the price is low and sell when it is high. That difference is what gives us the power to obtain a surplus value and, in some cases, convert this activity into a way to increase their income.
To trade, we must submit to the schedules of the different markets, since all kinds of shares can be bought, from raw materials to currencies, the so-called market Forex. The latter is open every day of the year for 24 hours. Contrary to the image that is projected, totally out of place and distorted, trading requires a lot of discipline and knowledge, so if you make an effort to train, your chances of success will be greater. That does not mean that you are not going to have disappointments, it is part of learning. There are different ways of trading, whether day trading, swing trading or trend trading, each one adjusted to a specific profile, so as you discover how trading works, you will be able to use one or another type.
Why you shouldn’t trade
This headline may catch your attention, we are indeed dedicated to bringing the world of investments closer to whoever wants it, but there are some reasons why you should not trade, read carefully before jumping headfirst.
First of all, it requires constant attention. Trading is a far cry from making a purchase and forgetting to reap the rewards later. No, the time you dedicate to it must be exclusively and putting all the concentration possible. This brings us to another reason why you should not trade, it can psychologically crush you. Having total control of your emotions and nerves of steel are essential elements to achieve our goals.
Secondly, trade It involves making an initial investment. You can’t start with €10, you’re going to need a lot more and you’re not going to ensure a return. For that reason, before continuing it is always interesting that you register in a broker who has a demo account. These allow you to trade with real values, but with fictitious money. So you can have a totally realistic view of how much you earn and how much you lose. That you have no doubt that you are going to lose money, it is part of your career as a trader at the beginning. Even those who have been doing it for a long time lose.
Finally, trading involves a high investment of time that you will spend training yourself, studying graphs, moving around the world, listening to the opinion of experts and spending time in front of a screen. If you are determined to go through all this, you only have to be strong and that your forces do not waver, the result may be worth it.
Advantages of trading
For people who have a free lifestyle, not anarchic, trading is one more chance to get some extra money . The most important factor is time, if you have it at your whim, you can use it to carry out operations that lead you to live in a different way.
How to avoid being affected by inflation
Unfortunately, inflation is a very topical issue. At the time of writing these lines, inflation in the European framework is high and in Spain it has shot up to 8.7%. To sum it up quickly, inflation is how much prices go up and causes money to lose value. Making a realistic, analytical and scientific trading operation will increase your winning positions, have money back and, of course, protect you from inflation. This is so since you are going to increase your income and avoid getting into debt to continue living, something that unfortunately is a very common practice. We insist on the importance of training, trading is not coming and kissing the saint , has an enormous job behind it that, on too many occasions, is not seen. If during these days you have taken a walk around the supermarket, you will have verified that most of the products that are sold there are more expensive.
How to increase your savings
Many people who started trading as something occasional, have come to do it as a way to increase their income and, therefore, have a greater capacity to save. Trading is not about arriving and making a fortune, in fact, whoever goes with those intentions quickly achieves the opposite. If you have a cool head and you set aside a certain amount of your earnings, you will be acquiring financial freedom and getting to have a base for anything. Get the idea that trading is to throw the net and catch fish, not fill the boat immediately. If you are willing to make trading a way to hold on to your savings, you can do it as long as you take small steps.
How to live from anywhere
Do you have a laptop and a permanent Internet connection? In addition to time, you already have the necessary elements to be able to set up your office anywhere. Now, discard the idea that you are sold so much of the trader operating while having a mojito on the beach. Neither those are ways to do it nor is it your goal. If you are a person who moves constantly, this will not prevent you from dedicating yourself to your investments. By dedicating some time each day, being constant and going very well with each step you take, you can make trading an exciting activity that takes place anywhere.
Therefore, trading can mean changing your way of life, acquiring some very interesting knowledge for all your life and being able to save for a future that, unfortunately, is increasingly uncertain financially.