HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

Trader: Profession of the 21st Century


Trading is the process of buying and selling various financial instruments. Therefore, a trader is an individual seeking to profit directly from the trading process. In a modern sense, an AMarkets trader is a person trading securities, commodities, currency pairs both in the exchange and over-the-counter markets, such as the Forex market. He can trade in the financial markets both for himself or on behalf of another person or institution he works for.

History of Trading

The first exchanges appeared in the XVI century in Antwerp and Lyon. They were created to solve the need of merchants in the financing, and the need of governments to place bond loans. As large companies developed, they became public through the issue of stocks and bonds. The term “trader” as we know it is closely connected with the appearance of the London Stock Exchange at the end of the 17th century.

The foreign exchange market has a relatively short history compared to the commodity and stock markets. Only in the 1970s, the nations decided to abandon the gold standard and refused to peg the value of their currencies to a certain amount of gold. In 1976, the Bretton Woods system, where all currencies were to the U.S. dollar which was in turn pegged to the price of gold, was replaced by the Jamaica Monetary System, which operated as a system of managed floating exchange rates. Since then, currencies became independent items.

For quite a long time, namely, until the end of the 1980s, small investors and speculators didn’t have access to the foreign exchange market. To participate in trading, one had to possess a large capital – at least $100 000. This is the nominal value of one trading lot. Exchange trading is still unavailable to retail traders, because, in addition to the cost of a trading lot, it is necessary to pay a very significant amount to sign a contract with the exchange. Starting from the early 1980s, some dealing centers in the UK and other countries revived margin trading for private traders, giving them the opportunity to trade the financial markets with small capital. In 1986, most global central banks officially recognized such a trading mechanism, granting access to the financial markets to an unlimited number of traders.

How to become a trader?

Trading is a real profession. And like any other profession, it requires a certain set of skills. To become competent, you need to understand how financial markets work. Despite the apparent complexity, mastering even the most basic principles will help you grasp the concept of trading and understand how the financial markets, banks, investment funds and other key institutions work. You will learn how to manage your capital, understand human behavior and psychology, gain confidence, and, possibly, make good money to realize your ideas.

How to become a trader? If you are determined to build a trading career, you’ll need to work hard. You have to study all the basic concepts of the financial market, its tools, psychological aspects of trading. Consider additional training and special trading courses, interact with more experienced traders and learn from them. Some training centers give you the opportunity to work as a trader together with other students or even with experienced practicing traders as part of their intensive training courses.

At the same time, in order to become a competent trader, it’s essential to learn and develop some essential soft skills, like composure and risk tolerance. Don’t listen to others; make your own trading decisions. Rely on your own experience and the experience of trusted professionals. As you gain more trading experience and become a professional, you can become a mentor and start working with beginners, sharing your trading strategies, giving tips and helping them make their first steps in the financial markets.

Remember, you can learn how to become successful in trading. But, as with any profession, traders also have good and bad days. The most important thing is to stick to your own trading strategy, maintain discipline and be consistent. Remember, trading is a marathon, not a sprint. Be patient, and you’ll achieve your desired results.

#source


RELATED

Trading Highly Liquid Currency Pairs: A Comprehensive Guide

Venture into the dynamic domain of trading fluid currency pairs. Dive deep into understanding the moments of rise and fall, uncover the forces that mold each currency...

How To Set Financial Goals In A Crisis

Clearly setting goals is an important step on the road to financial success. They, unlike abstract desires, will definitely work. At all times, you need to be serious and conscious about this question...

The Discipline of Setting your Stop-Loss Order

Are you wondering how you can more easily manage and monitor your trades? This article will show you the benefits of setting stop-losses in your daily trades!

Black Friday and How it Affects Markets

Black Friday can be best captured by images of customers sleeping in tents outside stores or running in hordes to enter their closest shopping mall, while...

Bitcoin: secrets of profitable trading

Bitcoin: although this currency is virtual, many people earn and have already earned real millions of dollars thanks to it. More than 1,000 people...

Unknown facts about the US dollar

The US dollar is the most popular currency in the world. About 90% of all financial operations are conducted with the US dollar on exchanges, and the rate of this...

Trading on Forex: A Primary Source of Income

There are a lot of discussions about trading within the boundlessness of the Internet, both in conventional businesses and state-financed organizations. People say...

Best Currency Pairs to Trade and Live Happily Ever After

It is so easy to get confused in the world of financial volatility and numerous assets that the FX market offers for trading. We know what you feel. Often newbies...

Understanding Market Stress: Navigating Economic Turbulence

Market stress is a term that has been increasingly prevalent in financial dialogues, reflecting moments of significant tension and disruption in market functionality...

Ultimate guide to trade Stellar Lumens (XLM) for beginners

Stellar is one of the early cryptocurrency networks that has managed to maintain a leading position in the crypto markets. With innovative services...

What Is Bitcoin and How Does It Work?

You must have heard about it. The first and most famous cryptocurrency has been in the headlines due to a vertiginous increase in value, breaking the threshold of $1,000 for the first time on 1 January 2017...

MetaTrader 4 (MT4): A Comprehensive Guide

MetaTrader 4, an offering from MetaQuotes Software Corporation, has firmly rooted itself in the world of foreign exchange trading. It has become an iconic platform...

How to become a Forex trader

While Forex is an exciting and lucrative financial market, many traders face difficulties when trying to make steady profits and grow...

Start your Trading with the Right Trading Tools

In this article, we discuss the various trading tools that traders can use to boost their trading, from trading platforms to charting software and trading bots.

Trading on Forex - A Primary Source of Income

There are a lot of discussions about trading within the boundlessness of the Internet, both in conventional businesses and state-financed organizations...

All that glitters ain't gold

Amid all the commotion in the equities and cryptocurrency markets, the yellow metal has looked somewhat neglected of late. At the height of the coronavirus crisis, gold was...

Four Ways to Use Your Red Envelope Money as a Trader

Lunar New Year is a major historical and cultural festival celebrated by millions of people around the world, particularly the Chinese, Vietnamese, and Korean communities...

Effective Bitcoin Trading in Five Steps

Rather than starting to invest in Bitcoin, trading Bitcoin can be even more profitable than investing alone. Trading Bitcoin involves taking full advantage of the asset's...

If you invest in stocks

Having a portfolio which includes shares of roughly 20 different companies almost eliminates unsystematic risks. Thus, the portfolio risk with one share...

InvestLite: Definition of margin trading

As margin is a widely used tool in trading, we need to understand margin definition, buying stock on margin, and how it applies in practice. This article is going to answer...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.