Have you known what Trading is? Did you know why Trading activities are recommended? Through this article, my Finance will try to discuss what and why Trading , and the importance of Learning Trading simply as the main capital of trading activities.
Today there are many activities that can be done by someone to get additional income. One simple activity that can be done and has the potential to provide benefits is by trading.
Trading is an activity of trading investment instruments in a short period of time. Activities Trading also a trading activity that may provide advantages in a short time span.
Therefore, to trade, a trader needs to be careful in choosing the investment instrument he buys.
Read Also: How To Choose The Right Motor Trade Insurance Company
Trading, whatever the instrument, is very promising. Indeed, this assumption is not wrong, not infrequently there are those who get wealth in a short time by trading.
But this must be accompanied by an understanding of the risks involved in trading itself. So, trading is also not only seen from the cool side.
Even so, trading is seen as very suitable for someone with limited capital who has a lot of free time. By knowing the ins and outs, of course, you can get additional income from trading.
With the progress of this online trading technology, you can create income from home. Enough to use gadgets such as laptops, computers, tablets, even smartphones, without the need to travel.
With the online trading feature, it helps you in several ways. Online trading applications , in addition to providing price information facilities, also contain information about market research, both for stock and forex instruments .
You also don't need to be preoccupied with constantly monitoring the price movements of your trading instruments , both stocks and forex .
In this auto trading feature , you can install the purchase price and selling price when it reaches a certain price. You can install buying and selling prices according to your Trading Plan .
You have full direct control as a trader , so you don't have to pay additional fees for brokers. Costs charged by securities are also not as big as those of dealing with brokerage services.
One of the ways you can do is by choosing a trading line as your part-time work in between the busyness of an employee.
The forex market and commodities are active 24 hours a week. If you choose forex or commodities as a trading instrument , then your trading hours can be adjusted flexibly.
But it's different from trading stocks. The stock market is only open following existing working hours. In this case forex is superior.
Trading is indeed an easy way to make money, but if you want to become a trader , then you must understand the ins and outs of the instruments that you are trading.
If you want to pursue forex trading , then you need to understand forex instruments to the ins and outs. Likewise with stocks. If you want to pursue stock trading , you also need to understand the stock instruments to the ins and outs.
If you already have the ins and outs of sufficient knowledge, you can start Trading to add additional income.
Now, there are many brokers and financial media, especially in the forex market and stocks that provide facilities for demo trading simulations , which allows us to easily register and try demo trading on demo accounts, the money used is only fake money.
To try a demo account you don't have to have money, because you can enjoy a demo account for free and be satisfied.
However, be careful. Trading is not without risk. Even though you feel you can easily make a profit on a demo account, that doesn't mean you can do the same with a real account. This is because demo accounts and real accounts have some technical and psychological differences.
In Indonesia, stock trading is regulated by the Indonesia Stock Exchange (IDX). Stock trading on the Stock Exchange also follows various trading mechanism regulations set by the IDX, such as price fractions, trading hours, number of lots, and other matters relating to stock trading in Indonesia. The existence of certain rules and various guarantor institutions makes trading in Indonesia attractive.
What is the difference between forex trading and a money changer ? There is not much difference between the two, because the transactions are the same, namely exchanging currencies. The difference in money changer transactions , generally done at the counter money changer , while in forex trading , it is not necessary.
Forex instruments have a large capitalization value, so they are not easily played by big players , as is the case with stocks. Besides that the forex market is open 24 hours during the working day, thus giving traders more freedom to choose the trading time . This is what makes forex trading attractive.
Assets that are used as a reference in futures trading , can be in the form of commodities such as gold or oil, can be in the form of foreign currency or forex , can also be in the form of global stock indices, such as the Nikkei, Hang Seng, and others. Futures have a trading mechanism that is similar to forex , this makes futures trading as attractive as forex trading .
In short, this is the difference between trading and investment:
If an investor purchases investment instruments, he hopes for his long-term prospects. In principle, investors only buy positions when they find investment instruments that they consider good. He will not sell it as long as it does not experience significant fundamental changes, so investors often benefit from long-term price increases.
On the other hand, traders make purchases to sell again in a short time. Large profits from a short period of time are the source of profit sought in trading .
In short term this transaction as traders react to short-term price changes in trade in investment instruments. This causes the holding period to tend to be short. Can be in a matter of months, weeks, days, hours, even minutes.
On the other hand, a trader who trades , will use technical analysis more often, with various indicators that are more responsive to short-term price movements.
In investing, investors only need to buy investment instruments that are considered good, then hold them for a certain time or at a certain price then sell them. If the price has not gone up while there is no fundamental change in the investment instrument, it will not be sold.
Unlike trading , in trading , a trader buys an investment instrument by following the price movements. If the trend of price movements increases then it is bought, and if there is a decline, then it sells.
Speculation is identical with a chancy transaction position, without a strong basis for analysis and often has no theoretical basis. Speculating in buying an investment instrument, can also be said to be a gamble.
Unlike trading activities . When you as a trader make a transaction position, everything is done based on careful calculations and controlled analysis.
A good trader always anticipates a price decline by setting a cut loss limit . In addition, traders who can control themselves also set profit-taking limits , and are not greedy.
If someone trader perform transaction positions with a probability of 60% -80% for profit, it is referred to as a trade . Whereas if a trader performs a transaction position with the probability of an unclear or uncounted profit, that is called speculation, and even tends to gamble.
If you want to trade , don't mistake trading and gambling. This lack of understanding about the difference between trading and speculation is what makes many investors fall.
There is a considerable potential profit in a short span of time, making trading an attractive business. But keep in mind, trading is not no risk. There is a risk that follows when you do not know the instrument you are trading .
When should I start learning trading ? If you want to make income right from home or from anywhere, the answer is: Immediately!
After reading the trading sundries, are you ready to start trading? Let's share your opinion by writing a comment in the following column. thanks.
Refrence: Finansialku
Getting to Know Trading as an Income Source
Trading is an activity of trading investment instruments in a short period of time. Activities Trading also a trading activity that may provide advantages in a short time span.
Therefore, to trade, a trader needs to be careful in choosing the investment instrument he buys.
Read Also: How To Choose The Right Motor Trade Insurance Company
Why do trading?
Many people have been involved in the world of Trading, saying that trading activities are very profitable. Trading is also seen as an alternative to get short money. Therefore, not a few people who used to be trading questions became interested in it.Trading, whatever the instrument, is very promising. Indeed, this assumption is not wrong, not infrequently there are those who get wealth in a short time by trading.
But this must be accompanied by an understanding of the risks involved in trading itself. So, trading is also not only seen from the cool side.
Even so, trading is seen as very suitable for someone with limited capital who has a lot of free time. By knowing the ins and outs, of course, you can get additional income from trading.
Here are the reasons why Trading is the right activity for you to do as an additional income.
1. Trading Can Be Done at Home
Now, trading, whether stocks, forex, commodities, futures, or options, can all be done online.With the progress of this online trading technology, you can create income from home. Enough to use gadgets such as laptops, computers, tablets, even smartphones, without the need to travel.
With the online trading feature, it helps you in several ways. Online trading applications , in addition to providing price information facilities, also contain information about market research, both for stock and forex instruments .
2 Trading is more practical with the Auto Trading feature
Trading is also an easy activity to do with the auto trading feature provided by the broker. This feature helps you to buy and sell shares based on orders automatically.You also don't need to be preoccupied with constantly monitoring the price movements of your trading instruments , both stocks and forex .
In this auto trading feature , you can install the purchase price and selling price when it reaches a certain price. You can install buying and selling prices according to your Trading Plan .
3 Relatively Low Trading Costs
With online trading , this activity also has a low cost advantage. In online trading , the trading system is fully automated.You have full direct control as a trader , so you don't have to pay additional fees for brokers. Costs charged by securities are also not as big as those of dealing with brokerage services.
4 Trading can be done in part time
There are times when you are tired of working as an employee, and you are also looking for ways to increase your income beyond your base salary.One of the ways you can do is by choosing a trading line as your part-time work in between the busyness of an employee.
The forex market and commodities are active 24 hours a week. If you choose forex or commodities as a trading instrument , then your trading hours can be adjusted flexibly.
But it's different from trading stocks. The stock market is only open following existing working hours. In this case forex is superior.
5 Trading Can Give Extra Money
It can't be denied, trading really promises extra money, it can even make someone get rich quick.Trading is indeed an easy way to make money, but if you want to become a trader , then you must understand the ins and outs of the instruments that you are trading.
If you want to pursue forex trading , then you need to understand forex instruments to the ins and outs. Likewise with stocks. If you want to pursue stock trading , you also need to understand the stock instruments to the ins and outs.
If you already have the ins and outs of sufficient knowledge, you can start Trading to add additional income.
6 Trading Practices Can Be Started from a Demo Account
Both stocks and forex , trading can start with a demo account first. This demo account is useful as a learning tool before you go directly into the world of trading.Now, there are many brokers and financial media, especially in the forex market and stocks that provide facilities for demo trading simulations , which allows us to easily register and try demo trading on demo accounts, the money used is only fake money.
To try a demo account you don't have to have money, because you can enjoy a demo account for free and be satisfied.
However, be careful. Trading is not without risk. Even though you feel you can easily make a profit on a demo account, that doesn't mean you can do the same with a real account. This is because demo accounts and real accounts have some technical and psychological differences.
Choosing Trading Instruments
Trading can be done in various investment instruments. In choosing a trading instrument , there are several criteria that need to be fulfilled so that you as a trader can trade comfortably:- Pay attention to the liquidity of trading instruments . Instruments that have high liquidity will often be traded and easy to resell.
- Pay attention to fluctuations in trading instrument prices . Event trading is an activity that exploit fluctuations in prices for profit. If prices are more volatile, the greater the profit opportunity, the greater the potential risk.
- Pay attention to the leverage level of trading instruments . There are several brokers from certain trading instruments giving up to 1: 100 leverage . the greater the level of leverage , the greater the profit opportunity, the greater the potential risk.
- Pay attention to the initial capital deposit . During this time trading activities are always considered expensive, but now, trading can be done with very affordable capital. Stock trading can also start from IDR 100,000, while forex trading can now also be done from US $ 10 only.
- Here are examples of trading instruments that you can choose for your trading activities .
# 1 Stock Trading
The first is stock. Shares are proof of ownership of a company. Companies that need capital will sell a portion of their shares on the Stock Exchange, and then sell them according to the trading mechanism that applies on the stock exchange.In Indonesia, stock trading is regulated by the Indonesia Stock Exchange (IDX). Stock trading on the Stock Exchange also follows various trading mechanism regulations set by the IDX, such as price fractions, trading hours, number of lots, and other matters relating to stock trading in Indonesia. The existence of certain rules and various guarantor institutions makes trading in Indonesia attractive.
# 2 Forex trading
The second trading instrument is forex. Forex is an abbreviation of foreign exchange or foreign exchange . In Indonesian, forex is known as forex or foreign exchange. In forex trading, the instrument traded is foreign currency.What is the difference between forex trading and a money changer ? There is not much difference between the two, because the transactions are the same, namely exchanging currencies. The difference in money changer transactions , generally done at the counter money changer , while in forex trading , it is not necessary.
Forex instruments have a large capitalization value, so they are not easily played by big players , as is the case with stocks. Besides that the forex market is open 24 hours during the working day, thus giving traders more freedom to choose the trading time . This is what makes forex trading attractive.
# 3 Trading Futures
In addition to stock and forex instruments , there are also futures instruments that can be used as trading tools . Futures or also called futures, is a standard contract traded on a futures exchange, to buy or sell a reference asset from a financial instrument on a future date, at a certain price.Assets that are used as a reference in futures trading , can be in the form of commodities such as gold or oil, can be in the form of foreign currency or forex , can also be in the form of global stock indices, such as the Nikkei, Hang Seng, and others. Futures have a trading mechanism that is similar to forex , this makes futures trading as attractive as forex trading .
Difference in Fundamental Trading and Investment
There is a very basic difference between trading and investment activities . Trading activity is trading investment instruments in a short period of time. The time span in trading , can be in days, hours, minutes or even seconds. This is certainly different from investment activities that have a long period of time.In short, this is the difference between trading and investment:
1 Duration and Source of Profit
The time period is the biggest and main difference between trading and investment. This difference will lead to other differences.If an investor purchases investment instruments, he hopes for his long-term prospects. In principle, investors only buy positions when they find investment instruments that they consider good. He will not sell it as long as it does not experience significant fundamental changes, so investors often benefit from long-term price increases.
On the other hand, traders make purchases to sell again in a short time. Large profits from a short period of time are the source of profit sought in trading .
In short term this transaction as traders react to short-term price changes in trade in investment instruments. This causes the holding period to tend to be short. Can be in a matter of months, weeks, days, hours, even minutes.
2 Analysis Tool
The difference in viewpoints between traders and investors also makes the analysis tools they use are different. In investing, either stocks or forex , investors are certain to use fundamental analysis.On the other hand, a trader who trades , will use technical analysis more often, with various indicators that are more responsive to short-term price movements.
3 Focus and Strategy
If the investor focuses more on the fundamental conditions of his investment instrument, then the trader focuses more on the up and down movement of the price. The strategies used are different.In investing, investors only need to buy investment instruments that are considered good, then hold them for a certain time or at a certain price then sell them. If the price has not gone up while there is no fundamental change in the investment instrument, it will not be sold.
Unlike trading , in trading , a trader buys an investment instrument by following the price movements. If the trend of price movements increases then it is bought, and if there is a decline, then it sells.
Trading Is Not Speculation, Especially Gambling
Trading activity is certainly different from speculation. The difference lies in the depth of analysis carried out when making a transaction position.Speculation is identical with a chancy transaction position, without a strong basis for analysis and often has no theoretical basis. Speculating in buying an investment instrument, can also be said to be a gamble.
Unlike trading activities . When you as a trader make a transaction position, everything is done based on careful calculations and controlled analysis.
A good trader always anticipates a price decline by setting a cut loss limit . In addition, traders who can control themselves also set profit-taking limits , and are not greedy.
If someone trader perform transaction positions with a probability of 60% -80% for profit, it is referred to as a trade . Whereas if a trader performs a transaction position with the probability of an unclear or uncounted profit, that is called speculation, and even tends to gamble.
If you want to trade , don't mistake trading and gambling. This lack of understanding about the difference between trading and speculation is what makes many investors fall.
Trading as a business
Trading is a type of business that can provide freedom of time, and energy for the perpetrators. In this case trading gives extraordinary freedom because there are no rules at all, and you don't need to be stuck with office hours.There is a considerable potential profit in a short span of time, making trading an attractive business. But keep in mind, trading is not no risk. There is a risk that follows when you do not know the instrument you are trading .
When should I start learning trading ? If you want to make income right from home or from anywhere, the answer is: Immediately!
After reading the trading sundries, are you ready to start trading? Let's share your opinion by writing a comment in the following column. thanks.
Refrence: Finansialku