Doug Mears, Doug Mears Actor, National Trading Corporation

Understanding the Basics of Trading to Become Pro Investor

Trading and Investment are the vital keys for a country’s prosperity. Through trading and investment policies Government aims to help businesses internationally.
What is trading?
It is a basic concept that involves buying and selling of securities, commodities such as shares, bonds, derivatives in the capacity of agent, broker, arbitrageur or speculator. It is generally done on a short term basis with hope of making profits. However it involves risks and depends on market fluctuations.
Traders can be professionals or may be working under a financial institution. There may be diverse kinds of traders dealing in various financial houses. These include:
• Stock trader
• Day trader
• High frequency trader
• Arbitrageur
Online trading has also been introduced where buying and selling of shares can be done with the click of a mouse. With the introduction of online transaction, trading has become easier, faster and economical. Some of the major financial products offered are:
• Mutual funds
• Insurance
• Equities
• Portfolio Management
With the help of online trading, a trader has to pay less brokerage compared if done via broker. Pressure of paper work is also eliminated. A Demat account has to be made.
As the factor of risk is very high in shares and commodities one has to be very careful in all the dealings. A proper market study is advisable. Learning the mechanics and fundamentals of trading becomes very essential. This will help in avoiding the risk factor.
Another tool of trading has been introduced- Binary trading. It is a new investment strategy but it is not very different from other type of stock or commodity trading. It offers a return from 70% to 90% in a short span of time. Yet, trading must be done with a lot of discipline.

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