Trading on the stock exchange is one of the ways of active investment. When you not only buy a packet of shares and wait for regular profits, but also earn on exchange rate fluctuations. Conditionally, this can be compared to a traditional trading business. Buy more expensive – sell cheaper.
Than a traditional trading business:
- currency pairs;
- resources;
- stocks;
- futures.
Cryptocurrencies also belong to currency pairs, but they are usually singled out into a separate group because of their individual specificity (in addition to the signs of money they have signs of resource – in particular, the finite number of the same Bitcoins). Trading on the exchange for beginners most often starts with currency pairs – they seem to be more familiar, understandable and predictable. It is a controversial statement. But it is psychologically more convenient to start with currencies.
How it happens
There are so-called market makers. Large companies and political associations that invest huge amounts of money in the market and really can move the price. Conditionally, the price movement is a rivalry between those who want to “sell more expensive” and “buy cheaper. Plus – on the influence of political events. For example, there is news about a war or a man-made disaster in some country. The currency of this country will rapidly start to get cheaper – large investors withdraw funds saving investments. This is a rough example, but it allows you to roughly understand what is happening in the financial market.
The average trader has no influence on the market, but, having correctly analyzed the situation and using such tools as twelvedata API, he can add his capital to those who are now moving the market and make money. But his investments in comparison with any national bank are insignificant, and to enter the market you need a broker – a company consolidating the funds invested by traders and giving an “order” to buy or sell on the foreign market.
Is it possible to make money on the exchange
There are two completely polar opinions:
- Trading on the stock exchange is a total lottery. There is no trading, you are just being pulled money.
- Trading on the stock exchange is easy. You can double your investment in a couple of days. Those who leak it are just idiots who didn’t find the magic button.
Both options are fundamentally wrong. Adequate brokers do exist and with a certain approach, trading can bring substantial profits. But in this area there is a high percentage of swindlers. And real trading is the same profession as any other. In order not to lose investments, but in the future – and to multiply, you will have to get acquainted with strategies, study the behavior of currencies and other assets, act strictly according to the planned plan.
Do not confuse trading on the stock exchange with gambling. People with a passion for gambling are strictly not recommended to work in trading. With 99% probability of gambling and emotionality will lead to the loss of all funds.
Where to learn to trade on the stock exchange
In this area of fraud, alas, no less than in the brokerage. Woe teachers promise to teach super method, and under this cover just get students to the right brokerage company, which pays the remuneration for the affiliate program. Meanwhile, the basics can be learned virtually for free and online. The easiest way to use modern tools, such as Stock market api python and gradually master this direction independently. Over time, your results will only get better, and the experience you gain will allow you to competently analyze your activities. This way you can learn to work on your mistakes and gradually reach a whole new level of trading.