The stock exchange entices investors with the hope of lucrative profits. In addition, there is a constant thrill that exerts a certain appeal. The classic job of the stock trader however shows a declining trend. The number of jobs for full-time positions is continuously decreasing, while the share of automated, computer-controlled business in the industry is increasing. Nevertheless, the opportunity remains for interested newcomers to engage in stock trading part-time.
The Profession of the Stock Trader – Examination at Deutschen Börsen AG
Entry into the profession of stock trading usually begins with training at a bank. Alternatively, traders list a completed degree in economics on their CV. Admission to stock trading requires a course at Deutsche Börse followed by an examination. In terms of content, topics such as the settlement of transactions, price formation on the exchange, or the applicable exchange law are on the curriculum. After successfully passing the exam, Deutsche Börsen AG issues the title of exchange and securities trader.
Declining Positions: Pursuing Stock Trading as a Side Job
In view of the declining number of available positions in stock trading, an increasing number of traders decide to conduct the business privately at their own risk. This comes with challenges and dangers. On the one hand, private trading requires a certain amount of start-up capital. On the other hand, losses have a direct impact on personal assets. Therefore it makes sense to pursue trading on the stock exchange as a side activity. An additional job as a primary occupation with a secured monthly income spreads the risk.
High profits possible when trading CFDs
If authorization from Deutsche Börsen AG is missing, there is the option of trading with a private broker. In this regard, Contracts for Difference (CFD for short) represent an interesting possibility, for example. These contracts for difference belong to the so-called leveraged products. Here, the trader moves sums that exceed the capital invested. As a result, there is a chance of high profits even with a comparatively small amount of capital.
Trading with CFDs takes place via a broker. Buyers of contracts for difference speculate on the price development of stocks, currencies, indices, or commodities. The trader indicates whether they expect rising or falling prices. With the correct forecast, considerable profits can be made as a side activity. The profit is calculated from the product of the traded units and the price difference. Conversely, due to the leverage effect, there is always the risk of immense losses.
Therefore, a careful and well-founded approach with an appropriate risk strategy is required. It is always important to consider which events lead to further changes in prices. Important influences come from the economy and politics. As here reported, for example, Donald Trump's election victory in the USA led to a considerable price increase on Wall Street.
