I am not a financial adviser or consultant.
What is Trading ?
Trading describes the activity of buying and selling financial instruments, such as stocks, bonds, commodities, or currencies, with the aim of making a profit from short-term price fluctuations.
Traders can be individuals, institutional investors, or financial institutions who engage in trading activities in various markets.
There is different financial products such as Forex, Stocks, Bonds, commodity CFDs, and Cryptocurrencies and trade can be made via different platforms.
Different Type of Traders.
Day traders buy and sell securities within the same trading day, aiming to profit from intraday price movements. They typically close all their positions before the market closes.
Swing traders hold positions for a few days to weeks. Taking advantage of short-term price patterns trends and swing trade aim to capture larger price moves.
Position traders hold positions for longer periods and ranging from weeks to months or even years.They focus on identifying long-term trends.
Scalpers aim to make small profits from frequent trades by exploiting minor price changes. They execute numerous trades within short time frames and rely on high liquidity.
Algorithmic or automated trading involves using computer programs to execute trades based on predefined rules and algorithms. It allows for faster trade execution.
Options trading involves buying or selling options contracts, which give the holder the right but not the obligation to buy or sell an underlying asset at a predetermined price within a specific time frame.
Risk is always involve in Trading.
When engaging in trading, it’s crucial to develop a trading plan, manage risk, and conduct thorough analysis of the markets. Traders often use technical analysis, fundamental analysis, or a combination of both to make trading decisions.
Trading involves risks, and it’s possible to incur losses. Many traders undergo extensive education and practice in order to improve their trading skills.
“If you personalise losses, you can’t trade.”