Do you know what kind of trader you want to become?
The market is so vast that to excel as a trader you must specialize in a specific sector. If you are new and no nothing about the various markets read on.
Typically, the five markets listed below are those in demand and will need your complete attention and expertise. The reason that you can specialize only in one field is because you require special skill sets to understand the intricacies of the trade and how the changing socio-economic and political scenario will affect the various factors governing a specific market; your goal as a trader must always be to maximize profits and look at opportunities to reduce losses.
- Fixed Income Trader: The name is self-explanatory. These traders deal in securities that will generate fixed income. Usually, as a fixed income trader, you will be attached to an investment firm. Your job there will involve buying these securities and selling them to clients; the client will pay additionally your fees for the services rendered. As a trader in this segment, you must assimilate various securities in a wide range to provide your client with a diversified portfolio.
- Share Trader: When people talk about trading they are referring to share trading because it is immensely popular and very profitable if you get it right. And it is also not necessary that to become a share trader you need any specific educational qualifications. In fact, if you want to get a feel of trading you must try your hand at Bitcoin Loophole, an automated cryptocurrency trading software that offers you a chance of dealing with not only cryptocurrencies but also gains an entry into the trading world. There are several reviews online on these algorithm-based trading platforms; you can also Continue reading here to know more about this promising trading robot.
Share trading has a steep learning curve because it involves market analysis and understanding the trends and testing out strategies for the maximum profits. Hence any help before the actual trade will be helpful.
- Foreign Exchange: As a trader in foreign exchange you will buy specific amount in one currency and sell it in another currency and make a profit from the difference in exchange rate. A foreign exchange trader can be a one-man show or it can be a part of a larger investment firm which specializes in foreign exchange trading.
You must evaluate the risks involved in all kinds of trading and only then decide which market you want to specialize in and gain expertise. While share trading does seem interesting it is the riskiest forms of trading.