Читать книгу Investor, trader, player. Greed is bad - Sergei Riazantsev - Страница 8

Any advertising is characterized by aggressiveness and exaggeration.

“Drink Coca-Cola!”.

Drink and don’t think. Don’t you see in the ads that those who drink this soda are insanely happy surrounded by cheerful friends? Having calmly judged at least a couple of seconds, it is obvious that a can of lemonade will not make us happy. And this drink also does not have the property of attracting new friends. And that’s for sure. Therefore, a person needs to be emotionally “stunned”: to throw into the consciousness and subconscious attractive images that are not always connected with reality.

We will talk about advertising financial services.

A familiar advertising image: a sad depositor is not satisfied with the amount of interest offered by banks. But then – oh, a miracle! – kind and generous brokerage companies are rushing to help. You are offered to install the application on your smartphone and immediately start trading stocks, bonds, currencies, oil and other financial instruments. Do I need to explain that money should immediately fall from the sky, in bundles of dollars or euros, who likes what? It’s a small matter – you just need to open a brokerage account and poke the buttons in your smartphone. Arbitrarily.

And now let’s get back to real life.

Brokerage companies (hereinafter referred to as brokers) are intermediaries between a person and financial markets. Trading on exchanges is conducted in lots, for example, one standard lot for the EURUSD currency pair is $ 100,000. It is clear that the vast majority of private traders do not have such free money, which means that the road to the exchange is closed for them. Brokers earn money on this by offering a person so-called leverage or margin trading. A person opens a relatively small account, say, $ 1,000. The broker sets the leverage of 1: 100, there are options more or less in the account settings. And a person can trade one lot of $100,000 on the exchanges.

The question is that the broker does not cease to be just an intermediary. Which is not responsible for the results of your trading, does not guarantee profit, does not protect against losses. This is not a bank, although large banks often combine banking activities with brokerage. This is not a bank that is responsible for the safety of your money, although large banks often combine banking activities with brokerage. But a brokerage account is by definition an account for independent trading. It is simply stated in the smallest letters in the contract or public offer, in legal documents that few people read and understand.

Therefore, do not try to be someone who you are not yet.

If this morning you are not an investor or a trader – this is not bad and not good – it’s just a fact. You may also not be a neurosurgeon or a translator from Chinese. And it doesn’t matter how much money surgeons or translators receive, you just don’t have that competence yet.

“Wanting a lot of money” is not a profession.

This is a desire.

Which in itself does not bring money.

It is important to understand that without proper preparation, you will get lost with a scalpel in the operating room or in front of a stack of pages with Chinese text. You will also get confused on the stock exchange, where prices change every second and most often do not go where you would like. Trading is generally one of the most highly competitive professions in the world, according to statistics, only about 2% of participants earn steadily on the exchange.

In conclusion, we will say about those cases when the broker has an offshore registration. You will not be informed about this in advertising, you need to read the notes typed in microscopic text yourself, on the website or in the contract. If you see any Virgin Islands or Saint Vincent and the Grenadines (often the English text is not translated to impress the client with solidity, to present yourself as an international financial company), know that this broker is outside the jurisdiction of your country. You will not be able to apply to the court of your country, they will not accept a statement of claim from you, or they will refuse later.

Therefore, double-check the selected brokerage company according to these criteria, it may save you a lot of time and money.