Financial markets are commonplace today. Because during the unstable employment situation, the unemployed are increasingly trying to find a new, alternative way of earning money.
You can work in the financial markets at any free time, not depend on the management and receive stable income. Simply put, work for yourself.
In addition to everything, the trader ( trader ) himself influences his earnings. Namely, the amount of knowledge and skills will help make a trader successful, and most importantly, rich.
- Characteristics of financial markets
- A variety of financial markets
Characteristics of financial markets
The financial market is a place where transactions are made to buy or sell trading instruments.
Types of trading instruments:
- precious metals
- oil and other financial instruments
A variety of financial markets
These markets are categorized based on the type of instrument.
- The foreign exchange market is the main “product” here – currency. It is bought or sold by traders. Here financial transactions are divided into conversion and deposit-credit. Forex is a type of the foreign exchange market, it is specialized only in the currency.
- Stock market – trades with securities, bills of exchange, shares or certificates are performed here.
- Commodity market – the trading process takes place with raw materials. This market is specialized in the sale or purchase of oil, ferrous or non-ferrous metals.
- Precious Metals Market – This market involves trading in precious metals, namely platinum, gold and silver. This type of market is the most popular during this period. This is due to the unstable position of the major currencies, and metals in this situation act as an opportunity to create financial resources.
Based on the trading method, the markets are separated:
- Exchange platforms – exchanges are individual platforms for trading standard contracts. Any exchange is specialized for a specific trading instrument – energy carriers, raw materials for the food industry, metals, and others.
Trading on exchanges is carried out at designated time periods, they are called “trading sessions”. Moreover, trading on different sites takes place with a specific type of product.
- OTC markets are characterized by the fact that they are conducted anywhere in the world, via the Internet or by telephone. This includes the Forex market, in which trading is subordinated not to the location, but to the trading period.
Trading periods are conducted in different parts of the world at specific times of the day.
Depending on the continent, trading periods are divided into: Asian, Australian, European, American.
In the American system, trading lasts around the clock, moving from one session to another. Due to the exceptional characteristics of such a market, anyone can take part in it.
The correct trading strategy for a beginner Forex trader
Someone manages to achieve good results after a few months spent in the financial market, others are missing a couple of years. Professionals say the secret is consistency.
- Self-education and self-control
In most cases, a novice trader cannot decide on a trading system for a long time, constantly rushes from “pipsing” to long-term tactics, and as a result he does not succeed.
That is why the first step is to understand which trading system is right for you. First, calculate what financial capabilities you have, as well as the amount of free time for trading.
If you are not planning a huge investment, you want to limit yourself to a few hundred dollars, then your system is scalping.
This trading strategy is good because even a novice trader can achieve good results with it. You do not need any extra knowledge, it is enough to study one of the many scalping strategies – and into battle. Starting with scalping is the right decision.
If you do not have any trading skills and knowledge, you can gradually acquire them by reading books and analyzing stock videos, simultaneously with trading. If the outcome is favorable, within a few months you will have a deposit that can be used in medium-term trading.
Scalping is a strategy that requires a lot of free time, as well as a trader’s perseverance.
You need to be prepared for a constant drop in the deposit from minus to plus, however, this trading method is practically the only one that allows you to rise from scratch.
Self-education and self-control
It’s another matter if you have a large sum of money in excess of at least three thousand dollars. In this case, medium-term and long-term strategies will come to your aid, which are enough in free access and literature.
If a trader does not have a large amount of free time, about fifteen minutes a day is enough for him. During this time, he manages to analyze the current situation on the market, get acquainted with the latest fundamental data, and place pending orders.
For example: You have in your arsenal a profitable forex system at Fibonacci levels . You looked at the chart, the location of the price relative to the important Fib levels.
After that, two pending orders are placed – one for a buy behind the level (triggered if the line is broken), the second for a sell (with the expectation of a corrective movement).
There are many similar tactics for forex trading. Regardless of the chosen strategy, do not forget about stop orders .
Even professionals recommend using them to minimize risks when investing in the financial markets.