XI Международная студенческая научная конференция Студенческий научный форум - 2019

Trading is an activity aimed at making a profit from difference in the course, by buying and selling currencies, stocks and other securities. This activity is associated with huge risks, since it does not provide you with a guarantee of stable earnings. The only thing guaranteed is the possibility of losing all your invested capital. Of course, working with such risks implies the development of certain rules for a person in the market, personal psychology, and the desire to self-develop and adapt to changing conditions.

“If your thinking does not correspond to the market, or if you ignore changes in the mass psychology of the crowd, then you have no chance of winning the game on the stock exchange. All professionals, who win, understand the huge importance of psychology in the exchange game. All lovers who lose ignore it.” That is why less than 10% of novice traders remain in the game for a long time.

Fear, greed, doubt in the correctness of choice, joy of victory, bitterness of defeat are inherent in all people - all those emotions can suppress professional players on the exchange.

  “Players feel happy when they win. They are extremely unhappy when they lose. Thus they differ from successful professionals who focus on long-term plans and equally do not survive and are not happy in the process of the game. ”

To survive in the market, a trader must follow certain axioms:

- regarding greed: “Know how to stop and take your profits”.

Greed is built into the human soul and in most cases it occupies a huge place. Greed is in all of us it is inseparable from man, but it can be suppressed and its influence on your decisions can be reduced. This axiom is based on a strange paradox: the chances of long-term enrichment increase with a decrease in the degree of greed.

- regarding hope: “When the ship starts to sink, do not pray. Jump!”

Hope reflects the wishes of a person when things go wrong in our lives, we hope that everything will get better soon. Hope is similar to optimism. Optimism means waiting for the best, but confidence is given only by knowing how to act in the worst case. When a trader makes a deal, he may be optimistic about the increase in the price of the purchased shares, but if the price goes down, the hope that the price will start rising again does not allow him to close the losing position.

- regarding religion and the occult: “It is unlikely that God’s plan for setting up the universe is to make you rich”.

A person wants to believe that there is some higher power that can make him happier or predict the future. A horoscope, fortune-telling on cards, etc., are good ways to dispel boredom, but they should not turn into a manic hobby.

There are religious people among traders, but when your money is at stake, it’s best to rely on your intellectual abilities. For traders there is only “His Majesty the market”. The market severely punishes mistakes and generously promotes merits.

- regarding mobility: “Avoid rooting. They prevent movement”.

Each person is guided by the preferences when choosing something. Preferences grow into affection. There is nothing shameful in having your favorite book or picture - things that you cannot part with.

A trader should not be attached to his item of trade. Stocks do not owe anything to the trader. "This action owes me my $ 100" is an unallowable phrase in the trader's lexicon.

It is important to note the social component of trading. The exchange of opinions and information plays an important role especially for employees of trading companies. Learning foreign languages ​​will also be a good bonus for a trader, as it ​​allows him to trade in foreign markets and communicate with foreign traders.

Why do so many people play the stock market?

One of the reasons is freedom. Trading on the stock exchange is possible anywhere in the world. This activity exempts from routine and does not force anyone to report to anyone. On the other hand, you have to admit to all your failures, because it will not be possible to throw the blame on others.

Another reason is the ability to receive substantial money, but as in any activity, you will be required to have strict discipline and a desire to develop.

Besides skills, knowledge and ability to adapt to market changes play a crucial role in the hierarchy of traders.

Summing up we can say that trading is one of the most dangerous and unstable types of earnings. It requires a lot of time, stress resistance, iron discipline and proper money management. Trading is risky and looks like a dangerous adventure.

“Adventure adds value to life, and the only way to participate in it is to put yourselves at risk.”

References:

1. Александр Элдер. Как играть и выигрывать на бирже. URL: http://www.forex.ua/upload/uf/929/aleksandr_jelder_kak_igrat_i_vyigryvat_na_birzhe.pdf (Дата обращения – 11.12.2018).

2. Макс Гюнтер. Аксиомы биржевого спекулянта. URL: https://www.litmir.me/br/?b=279407 (Дата обращения – 11.12.2018).

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