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Trading History. Trader is a Profession of the XXI Century

Category: Trader Psychology

Trading History. Trader is a Profession of the XXI Century
The history of the emergence of trading

The first exchanges - Antwerp and Lyons - appeared in the 16th century. They were the answer to the need of merchants in goods for financing, and states - in the placement of bonds. With the development of large companies, trading in shares or stocks of these companies began to develop. The concept of "trader" is closely related to the emergence of the London Stock Exchange in the late 17th century.

The foreign exchange market, in contrast to the commodity and stock market, has a relatively short history. It was not until the early 1970s that governments began to abandon the gold standard, or peg their currencies to the value of a certain amount of gold. In 1976, the Bretton Woods system of the gold standard was replaced by the Jamaican monetary system, which established a floating exchange rate regime. Since then, currencies, in fact, began to act as an independent commodity.

For a long time, namely until the end of the 1980s, small investors and speculators had no access to the foreign exchange market. To trade, a solid capital was needed - from $ 100 thousand. This is the face value of one trading lot. Exchange trading still remains inaccessible to small traders, since, in addition to the cost of a trading lot, it is necessary to pay a very significant amount by concluding a contract with the exchange. Since the early 1980s, some dealing centers in the UK and other countries have revived margin trading for private traders, thus giving them the opportunity to trade in the financial markets without having significant capital. In 1986, the central banks of most countries of the world officially recognized such a trading mechanism, in fact, opening an unlimited number of people access to trading in financial markets.

How to start trading?

Trading is a real profession. And, like any profession, he does not forgive amateurism. Understanding financial markets can and should be learned. Despite the seeming complexity, mastering even the most basic principles will help you understand not only the trading of financial assets, but also understand how financial markets work, how banks, investment funds and other key industry institutions work. This means that you can learn to manage your finances, understand human psychology, gain self-confidence, and, possibly, earn capital to translate your ideas.

How can you become a trader if you have firmly decided to move towards achieving your goals in this way? First of all, study and study again. It is necessary to understand the basic concepts of the financial market, its instruments, psychological aspects of trading. Do not neglect additional training and communication with experienced traders. Often, training centers provide the opportunity to work as a trader together with other students or even experienced practicing traders in intensive trading courses.

At the same time, in order to fully work as a trader, it is necessary to maintain composure and restraint. Don't listen to others, look for solutions on your own. Build on your experience and the experience of the professionals you trust. As your professionalism grows and you gain experience, a successful trader in Moscow has every chance to become a mentor for newcomers, share with them his strategy and tactics of working in the financial markets.

Remember, successful trading can be learned. But, as with any profession, there are good days and bad ones, even for professional players. The main thing is to gradually consolidate a stable positive result while observing the rules and principles of your own trading strategy.