What is trading (about the trader's profession)

The stock market is the most important element of the redistribution of capital and risk in a modern dynamic economy. The Russian stock market is relatively young, but has already managed to go through many stages of development. The period up to 2000 was characterized for the domestic stock market by passing through the formation stage. The market bubble, inflated by 1998, safely burst by 2000, and this started a real, already new history of the domestic stock market. However, time does not stand still, and together with the development of the economy, the domestic stock market is also developing. 

Stabilization, the consistent development of the domestic market, the emergence of the possibility of Internet trading, led to the entry of new participants into the domestic market. The greedy speculator, acting unceremoniously, was replaced by a more balanced trader who adequately assesses the risks and opportunities. On the stock market road has opened for the average person. Now anyone is able to open an account in a brokerage firm and feel like a still young, but extremely promising, trader profession.

So who is a trader and what does he do?

After thinking about this, an ordinary citizen of our country draws in his mind the word speculator (with bad connotations) and snatches from Western films about dishonest financial tycoons. Well, all this is on the market, in fact, as in any other field of activity, there will always be a similar category of people present. Another question is that the overwhelming majority of participants in the stock market are still ordinary people, just like you and me. Market participant, in a different way - the trader is, above all, a businessman. He assumes the risks associated with his own business, and - this aspect is loved by everyone - receives an appropriate reward for his work.

However, this is where the differences begin that distinguish trading from any other business. Thinking about business, we present at once many problems that people face when they decide to take such a step, finding start-up capital, obtaining various licenses, maintaining staff and many other costly issues. All this does not apply to the work of a trader, here you can conduct the entire business to one, and you will be engaged exclusively in intellectual work, without tackling tedious administrative issues. In principle, if you have a desire to move to the side of professional participants, then all this is also there, but - this will be a different business. The one we are thinking about requires very little, in the sense of starting work, and very much for its successful functioning. Let's see how it all happens. 

You have initial capital and, in principle, you can already start with this. Moreover, modern investment companies that provide trading services make it possible to start working practically from 100 rubles. Another issue is that in any business there is a minimum threshold for capital investment, from which you can get tangible returns. Currently, when working as a trader - it is about 300 thousand rubles. But this amount will allow you, with all the others, to completely change the profession and surrender to trading.

The next step is to find a company that provides services for work in the stock market. The development of online trading has solved this problem once and for all. Now, being anywhere in the world, all you need to work as a trader is a computer with Internet access. In case you do not insist on working from the wild jungle, you can come to the company's office and trade from there. Actually, you just realized another advantage of trading. To work as a trader you do not need to go anywhere every day. You can safely travel the world and work at the same time.

Go ahead.

Since you have your own business, then, accordingly, you yourself are your boss. No one will tell you what to do or how to do it. You and only you make all the decisions. But this moment implies that in case of failure, you will have no one to blame but yourself. However, success will also belong only to you. 

Well, the most beloved aspect of the work of a trader - your earnings completely depend only on you, and this is not an exaggeration! What does it mean? He is not limited by anything except your ability to trade.

You have just understood how little it takes to get started as a trader, but you are somewhat alert to the phrase that it takes a lot to successfully work as a trader. This is true, but these difficulties are a matter of your readiness to develop. In order to experience the beauty of life described above, you must successfully compete with the best minds of the stock market. And this competition will be held in the intellectual sphere. Working as a trader is a job for thinking people. 

Until now, we have been discussing the advantages of a trader’s job, but it is not yet clear what the trader is doing? In a general sense - the trader trades on the stock exchange. Exchange - this is only an element of market infrastructure, where the exchange of goods for capital. In the case of a stock exchange, stocks, bonds, futures and options are the commodity. The exchange is distinguished from any market by the standardization of conducting operations and equality in trading rights and obtaining information on all transactions made by all participants in trades. So, the trader earns a living by buying and selling instruments circulating on the exchange. Roughly speaking, he buys cheaper and sells more expensive. But this trade is not connected with the physical movement of material values. Accounting for rights to these values ​​is carried out in the information system of the exchange, which links all bidders.

In modern Russia there are several exchange platforms where securities of Russian issuers are traded. These are RTS, MICEX, MFB, SPFB and others. However, for our trader the most important of them is the MICEX. It is MICEX that currently determines the face of a trading business. It was on the MICEX after 2000 that the majority of traders came. And it is the development of the MICEX that will determine the future face of the domestic stock market. For the safety trading I use Kyrrex.

I want to focus separately on the function that the trader performs. At first glance it may seem that the trader does not produce anything, his work seems to be parasitic on the economic development of the country. I must immediately say that it is not. The stock trader performs three major functions in the economy. First, the trader creates capital with his work. And this is very important because capital is necessary for the development of any economy. Absolutely no matter how he then disposes them. It is important that the country becomes more capital, and it is included in the economic turnover. The second important function is the assessment and redistribution of risks in the economy. Buying certain shares, the trader makes a risk assessment of the company and pays its fair price for them. Thus, traders provide the entire economy with a focus on both risk and company value. Finally, the trader creates liquidity in the market. This feature distinguishes the real trader from the investor. The trader is much more often the investor conducts operations on the exchange. This is associated with increased risk, but can also lead to increased profitability. 

In general, the issue of risk attitude and control distinguishes the professional trader from the player. A player goes to the exchange because of the illusions of easy money; for a player, each transaction is nothing more than a bet on a number or on color. This trader soberly fits the whole process of making a deal. It assesses and holds an acceptable risk in exchange for an acceptable return. The player goes to the casino. Human nature tends to easy and fast money. The exchange provides such an opportunity. Therefore, people are so often disappointed when they try themselves as traders. In fact, they come to play in the casino. Judge for yourself, would you invest significant amounts in a new business for you without proper training? If you are a reasonable person, the answer is obvious, but for some reason people come to the stock exchange, not understanding many things and wanting to get rich instantly.