What is an Investment Trader? Understanding, Type and Benefits

  In a stock investment instrument, not only investors who pursue profits and create the right strategy to get investment profits as much as possible. There is one more important figure that makes stock investing more attractive and certainly helps many investors to benefit more from playing stocks.

Investment Trader

That person is a trader. For those who often struggle with things that smell of investment is certainly no stranger to this one figure. Just like tittle Investor, Trader is one of the professions that is trending today. New traders are increasingly popping up thanks to the technological advances that support it.

Understanding Traders in Investing

Trader is a term for those who buy and sell an investment instrument or trade on a variety of investment instruments. The principle of trading here is to buy when the price drops, then sell it when the price increases.

The purpose of trading is to pursue maximum profits in a short time with a good strategy and analysis to avoid losses when trading activities. In investing, if the investor focuses on the fundamentals of the product to be purchased, then the trader will focus on sentiment and market conditions.

Investment Trader

So, a trader is not a person who is too concerned with the performance of the company's stock to be purchased, but rather as long as market sentiment towards the company is positive, then he will buy his shares to be resold immediately.

That's because, compared to investors, the transactions a trader does are more short-term with a much greater frequency.

Traders who are already very proficient can enter all types of markets, whether the forex market, stocks, commodities or futures. George Soros, founder of Quantum Funds, is an example of one of the world-class traders who managed to successfully become a Trader.

Types of Investment Trading That Exist Today

Traders in stock investments have been widely known, but did you know that the trader's own profession turns out to exist in almost many other types of investments. Here are the types of investment traders that exist today:

1. Forex trading

In forex, trading is foreign currency trading by utilizing currency rates that go up and down in a certain period of time. However, the way it works is different from money exchange in money changer.

Short-term forex trading can be done online by depositing some money first. Almost the same as short-term trading of stocks, but the object traded is not the issuer's shares, but foreign currencies.

Contonya like this, for example buying US dollars worth US $ 10 at the price of Rp14,000 in the morning. Then in the afternoon the price of the dollar against the rupiah rose to Rp14,100. So, we can get a profit difference of Rp100 for each dollar note sold.

2. Trading stocks

Stock trading is buying and selling shares in the short term. Both offline and online through stock apps. How stock trading works is very simple. It is buying a stock when it goes down, then reselling it when it goes up.

That way, stock traders can get capital gains or profits from the sale of shares when the price rises. This method is not much different from other simple trading systems.

For example, you buy chili for Rp40,000 on Monday. The next day you resale the chili when the price rises to Rp60 thousand. That is, there is a profit (margin) of Rp20 thousand.

3. Binary Trading

Binary options or in Indonesian known as binary options is one form of online trading instrument in which traders predict or guess the price of an asset that goes up or down at a certain period of time.

Binary short-term trading systems are generally applied to horse racing and soccer gambling transactions but binary trading itself is not gambling, only the system is widely applied to many types of gambling.

The way it works is where we risk money to set certain targets in the binary system. If the target is met, we will get double the profit. Conversely, if it does not reach the target, money floats.

4. Trading Gold

Gold trading is trading gold online in the forex market without involving the physical transfer of gold assets. This is one alternative way to take advantage of the movement of the rise and fall of gold prices.

The concept of Gold Trading is actually similar to forex trading, where the role of gold as a currency in the forex market to be traded with the symbol XAU.

Usually gold is paired with the U.S. dollar in the form of the pair XAU / USD, because the price of the dollar can be influenced by several factors such as inflation, the monetary policy of the central bank, and the level of the United States economy.

So, when the US Dollar is expected to decline, then most investors will take a long position XAU / USD, meaning buy XAU and sell USD.

5. Trading Bitcoin

Bitcoin trading is one way to benefit from one of these cryptocurrencies. The concept of bitcoin trading is to benefit from the difference in the selling price with the purchase price. Buy at a lower price and sell at a higher price.

The object in this short-term trade is Bitcoin itself which can be purchased with rupiah from Rp1,500 to get 0.00001 bitcoin. By looking at the potential of bitcoin today can be said, the possibility of profits ranging from tens to hundreds of millions of rupiah can be very large.

Benefits of Being an Investment Trader

Just like investing, traders have their own way of making profits. Well for those who are interested in trying the current profession here are some benefits that can be obtained by becoming a trader:

Investment Trader

1. Can Participate Despite Limited Capital

You can still be a trader even if your capital is limited. For example, in forex trading there is such a thing as a margin and leverage system where the existence of this system allows the broker to lend a certain amount of funds proportional to the guarantee of funds from the trader.

So, even if your capital is limited, you can start trading thanks to the system. And because it resembles trading activities, trading is suitable for those of you who want to earn additional income from limited capital with a short span of time.

2. Can be done from Anywhere

Due to the advancement of internet technology today and the many trading applications for smartphones make trading activities easier and more flexible.  Only armed with gadgets such as laptops, tablets or mobile phones and internet connection you can trade both at home, café, office even inside the MRT.

3. There are Auto Trading Features that make It Easier to Trade

In the online trading application, the Auto Trading feature helps you buy and sell according to orders that are imposed automatically. So you no longer need to bother monitoring the price movements of trading instruments from time to time. Simply put up the buy and sell price according to your trading plan and let the feature work automatically.

4. Cheap Cost

Because everything is all online makes trading activities not only flexible but also do not cost a lot. In addition, as a trader, you have direct control to make buying and selling transactions.

So you no longer need to spend on brokerage services. The fees charged by securities are also relatively lower than making transactions with brokerage services.

5. It Could Be a Side Job

If you do not intend to make a trader as a full-time job you can trade as a side job. You can simply make productive use of your free time by working part-time as a trader.

Take it easy, the forex market and its commodities are active for 24 hours. So, you just have to manage the time between working in the office and trading.

6. A Decent Source of Additional Income Cuan

If you already understand well the ins and outs of trading, you can easily earn money in a short time by becoming a trader. Make sure you have studied and understood the details of each instrument and choose which one should suit your current financial condition to avoid major risks.

Understand It Well because Remember Everything Has Risks!

Whether you are an investor or a trader, risk in an investment instrument is inevitable. There is nothing we can do to eliminate the risk to investment instruments except minimize them. And the most effective way to minimize risk is to understand well the selected investment instrument. Keep learning, asking questions and trying to get bigger profits.