This article is just my humble attempt to do that and start exploring some very important concepts. To be good at something we must start from the basics and this actually may help you in your trading journey. It helped me so it might just do you the same.
What is the stock market ?
To understand what the stock market is, we must go deeper into history. I believe that "trader" is just another word for a "merchant", which by definitions is :
"A merchant is a businessperson who trades in commodities that were produced by others, in order to earn a profit.
Merchants can be one of two types:
- A wholesale merchant operates in the chain between producer and retail merchant. Some wholesale merchants only organize the movement of goods rather than move the goods themselves.
- A retail merchant or retailer, sells commodities to consumers (including businesses). A shop owner is a retail merchant." (from Wikipedia)
So this is one of the oldest profession in the world, and it´s been around since the birth of capitalism. The first merchants would acquire their goods in one location, transport them to other places, where they thought it would be needed and exchange it for something else, usually with greater value. These goods cold be from spices to gold.
