It’s omnipresent – stocks, commodities, currency pairs (Forex). Day by day we keep watching media, that dollar depressed against euro and vice versa, and that year by year gold gradually reached its new highs to subsequently experience the most powerful decline in many years history. We see shares of numerous enterprises rising and falling. For the last few years we have experienced the whole world being frightened of fluctuation of stock market indices (e.g. S&P 500, German DAX, French CAC40, Japanese Nikkei 225 etc.). Therefore, we are constantly observing price movements in time. And there is no doubt that every time these significant movements occurred, someone filled his pockets and on the other side someone else went bankrupt.
So why do you read this handbook? The purpose is to support you open your eyes and approach the world of successful exchange trading. I shall try helping you to find out that a path to your dream wealth and financial independence can turn real thanks to this wonderful business.
We are living in the age of endless opportunities. Nowadays, thanks to the Internet the data can be transmitted across the world literally in hundredths of seconds. And that is the main reason why trading has become available to almost anyone.
In the past (still in early 90s) trading was based on phone calls and brokerage by a person who was present on an exchange floor executing traders’ orders. In the present electronic trading is prevailing. Thus, we can trade anything we wish from a comfort of our home: commodities, stocks, options, pair trading. We are not limited by any location which means a magnificent advantage compared to the past!
So, the location barrier in not an issue anymore. The important thing is to surpass other possible obstacles of trading. One of the major obstacle is the fact that we live in the negative environment where many discouraging articles and stories consider trading to be nothing more than just a form of gambling in casino. The paradoxical fact is that this is declared by those who have not even did trading yet or those who did try but did not succeed. Those people compare trading to roulette, slot machines or even betting on sports. The fact is that in case of casino and slot machines, it is the owner who has winning probabilities. Have you ever heard of gambler who was consistently gambling for living in a long run? Of course, there could be someone having his lucky day in the casino with a remarkable profit. If he was conscious enough not to go to casino again, he would become one of the few who made profit. If you go to casino on regular basis and bet frequently, you will definitely empty your pocket sooner or later, as the winning probability will always play against you.
It is critically important to realize that “rules of the game“ in trading are not determined just by a single person such as a casino owner. Everyone trading buy or sell orders on stock or commodity exchange is taking part on the price change. Thus, the goal is to have a winning probability on your side and set the rules.
The good news is that it is possible. Why? Take your time and look for serious traders who do trading for a living. However, trading is like in any other entrepreneurship and demand self-determination self-discipline. It means that trading is very time demanding because of intensive studying, self-education and will.
The unique opportunity in the trading is that it is possible to practice simulated trading as long as you want without placing your hard earned money at risk. So you can train the trading. Would you be able to say anything like this in common business?
It is unwritten rule that only about 1 of 10 companies succeed in business in the long run. Honestly, success rate of exchange traders is more or less similar. You have to take into account that exchange is a very competitive environment. To distinguish yourself from the losers and reach an imaginary throne of success and wealth, it requires, as mentioned earlier, the self-discipline, perseverance and long-term education. Only this way you can become real specialists in trading. One of the biggest advantage of trading is its full transparency. You never have to wait for a customer to finally pay for your services. The money from your profitable trade will be immediately credited to your bank account and no one can take it away from you.
Let’s now summarize main advantages and disadvantages of trading:
Tab. 1 and Tab. 2: Advantages and Disadvantages of Trading
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