What is Trading and Who are Traders?
3 minutes for reading
What is trading?
Let’s consider the etymology of the word “Trading”. It is derived from English “to trade”. Thus, we may come to the understanding that trading is some kind of activity, which is related to buying or selling something.
Surely, many of you have heard such expressions as “grain trading” or “oil trading”, but the most popular one is “online trading”, which means trading different types of assets in the Internet. In the past, a person who wanted to make money on trading stocks, currencies, or any other derivative financial instruments (futures, for instance) had to open an account with a broker.
They could send orders to sell or buy only over the phone, hence often wasting valuable seconds and minutes and, as a result, losing money. With the development of internet technologies, the mankind got an opportunity to buy stocks of companies and currencies of countries that are located halfway around the world without leaving their homes.
Thanks to the modern brokerage services and state-of-the-art computer technologies, one can trade Apple stocks from a Paris attic, corn futures from a cozy New York office, or sell/buy Euros for US Dollars travelling by car or train anywhere in the world. The only thing that matters is a stable internet connection. For a large number of people throughout the world trading has become not just a business or a way to make money, but also a lifestyle.
Who are traders?
Those who are engaged in this type of activity are called traders. A Trader is an occupation not only of the present, but of the future as well. Reasons for this are quite obvious:
- First of all, this job offers a great deal of ways and opportunities for making money.
- Secondly, the number of available trading instruments is constantly expanding.
- Thirdly, considerable increase of quantity and quality of infrastructure services.
- In the fourth place, continuously growing number of new market players, not only professionals (such as investment and hedge funds), but private investors and retail traders as well, which may suggest stable prospects of further development of online trading.
What is algorithmic trading?
Another important factor that accelerates the online trading industry is constant improvement of software for algorithmic trading.
Summarizing this information on online trading, it would be safe to say that this occupation is currently one of the most popular business activities in the Internet. If you dream of being a freelancer and prefer making your own decisions instead of taking orders from others, incurring expenses for office space, staff, suppliers, and rent, then online trading is surely a way out for you. Apart from this, online trading is an intellectual business where all best and strongest features of your character may be applied in the most appropriate way.
If you ask whether any person can trade or this activity is meant for chosen ones, then there is no absolute answer to this question. Of course, anyone, who wants to try their hands in trading, like, for example, in sports, can do it. But not all athletes strike gold in the Olympics.
One thing is for sure: trading can be mastered only by tough people with strong personalities and nerves of steel. Those who wouldn’t give up and back down from difficulties. If you believe that you are the one described above, trading will be an excellent choice for you.