For some reason, trade has become very fashionable in recent years. Perhaps the economic crisis has pushed some to “get rich by working only a few hours a day.” This is the great urban legend around a profession that, however, is the most stressful and harsh one in the world for many experts.
For those who don’t know exactly what this business is, we will try to explain it in this article. Firstly, a definition: trade involves the purchase and sale of assets on the financial markets in order to make a profit. The idea is to buy cheaply and sell expensively to make a profit.
The values may be shares of listed companies, futures referred to stock indices, commodities and currencies such as the euro, the dollar or the pound. When we buy and sell currencies, we do it in a market called Forex or Forex, and it is always done in one currency in relation to another.
When trading, it can be done in the long term, i.e. the long-term purchase or sale of financial assets; or what is known as intraday or intraday trading, which consists of opening and closing positions on the same day, i.e. the purchase or sale in a single day in order to obtain a rapid profit. A trader usually has an economic background (economics, administration, accounting) with not only financial knowledge, but also mathematics and statistics.
In banks and funds, the remuneration is usually high compared to other professions for the “bonuses” they charge at the end of the year on the basis of what they earned for the entity. The bonus can be a fixed salary several times.
The race is usually fairly short (few people are over 40), but this fact has a tendency to change with the 2008-2012 crisis. One of the reasons for salaries and high bonuses is the stress generated by the market and the responsibility due to the amount of money managed by a single person at times (investments of tens of millions). A trader operates in the markets in the short term and aspires to a rapid return, but the search for money is contrary to religious morality through short-term financial markets.