What is trade and how does it work?

The arrival of the economic crisis has pushed many people to try to get rich in one day and from the couch at home ... or from the beach. And it is that you only need a computer or smartphone and Internet connection. Or at least that is the perception or urban legend that precedes it. But what is trading? Can you really live on it?

Financial trading consists of buying or selling financial instruments listed on the stock market - stocks, companies, currencies or commodities - using a platform provided by a broker, and with the intention of obtaining economic gains.

So, can you do trading? Some years ago, trading was something exclusive to elites, influential people with purchasing power. However, with the arrival of the internet and new technologies, anyone with a connected device can do so from home, on vacation, and at any time of the day. Far are the times when the trader had to approach himself to the bank's office to give the order.

On the other hand, while it is true that trading has always been characterized by being a short-term activity or investment (minutes -inday-, days or weeks), it can also be operated in the medium and long term, that is, buying or selling values in a large time interval (months, and even years).

In short, you only need four requirements to be a trader: a computer with an Internet connection (laptop or desktop) or smartphone; hiring a broker that acts as an intermediary between the buyer and the seller and which facilitates the platform where operations can be carried out in real time; have capital not destined to products of first necessity; and have some knowledge of the stock market in general and of trading in particular.

It is tempting? Of course, like any other platform that can make you earn money in a few minutes. However, the financial and mini-credit comparison WannaCash recommends acting with caution, prudence and responsibility. You will not become a trader overnight and, like any other discipline, you need to train and understand its operation before; and this requires time, effort and a lot of dedication. Only in this way can you elaborate an informed strategy and reduce risks in the short, medium or long term.