Throwing aside fraudsters, it should be noted that trading on the exchange can really bring profit. If you take it seriously – as a job. And like any business, there will be pros and cons.
Advantages of trading
- Trading on the stock exchange online. There is no need to go to the office, work on a clear schedule. You can trade at home, in the park, on vacation – the main thing is to have a stable Internet.
- No supervisors. No one commands, does not stand over your soul, does not give tasks, does not fine and does not watch how you work.
- Lack of plans/competitions/requirements. It’s up to you to decide how much you want to work. No one will “scold” you for low profits. You don’t have to compete with competitors, try to come up with a more effective tactics than your neighbor. The main thing is that the profit suits you.
Disadvantages of trading
- It’s a big waste of time. To understand where the rate is going, where to place an order – to buy or sell, it will take hours to sit over charts and news. At least in the first year. For example, you will need to master many different instruments, such as Stock trading api python.
- High risks. Unfortunate decisions can lead to a complete loss of investment. Unlike ordinary work, where in the worst case you will get nothing, in trading on the exchange you can lose everything you have invested.
You should not invest credit funds, funds from the sale of cars/apartments, latest savings. Especially when it comes to trading on the stock exchange for beginners. These must be funds that you are willing to lose without critical financial loss.
As you learn the basics of analysis, the market is usually rethought. This leads to the need to reconsider the funds that are used in the analysis. Having deepened into the specifics of market analysis, you may understand that you need a completely different software product that provides analysis. Even if this feeling does not arise, at this stage it is still recommended to reflect on the question: “How to carry out market analysis? In other words, on what technical analysis package should you choose?
At this stage, you should at least decide beforehand, what type of trading operations you intend to conduct. This is a very important question, because the main alternatives are four: day trading (trading in large quantities of securities with small values of exchange rate changes within 1/8 or so), intraday trading (involves opening and closing trading positions within the boundaries of the trading day), short-term trading (usually understood as a trade of several days), and finally, long-term trading (this usually includes trading that lasts from 30-40 days). As you understand, depending on your preferred investment horizons, there is also a choice of the above trading types.
And only now we have to solve the question: “Which broker to trade through? It is clear that the choice of broker and the conditions offered by him depends on the type of trading behavior. If you intend to trade within a day, you should contact a firm that provides direct access to the “trading space”. Short-term trading is not so demanding, here you can easily limit yourself to an ordinary online broker. In long-term trading, telephone is often enough. Of course, all this should not be taken as a dogma, but it should be taken as a basis. If you want to trade on your own, it makes sense to study such companies as Twelve Data. They will help you build your own strategy and give you many useful tools. If you use them correctly in your trading, then you will be able to succeed very soon.