What is Trading?
Trading is the act of buying and selling financial assets such as stocks, currencies, or commodities to make a profit from price fluctuations.
Types of Markets
- Stock Market: Trade shares of publicly listed companies (e.g., Apple, Tesla).
- Forex Market: Exchange currencies (e.g., USD/EUR).
- Cryptocurrency Market: Trade digital assets (e.g., Bitcoin, Ethereum).
- Commodities Market: Deal in raw materials (e.g., gold, oil).
Key Trading Concepts
Before you start, understand these terms (see our glossary for more):
- Bid/Ask Price
- The price at which you can sell (bid) or buy (ask) an asset.
- Leverage
- Borrowing funds to amplify trades, increasing both potential profits and risks.
- Stop Loss
- An order to sell an asset if its price falls to a certain level to limit losses.
Basic Trading Strategies
Here are beginner-friendly approaches:
- Day Trading: Buy and sell within the same day to profit from small price moves.
- Swing Trading: Hold assets for days or weeks to capture larger price swings.
- Position Trading: Hold for months, focusing on long-term trends.
Getting Started
Follow these steps:
- Choose a market and learn its basics.
- Open a brokerage account (e.g., TD Ameritrade, Binance).
- Start with a demo account to practice risk-free.
- Use tools like our profit/loss calculator.
- Subscribe to Trade Signals Pro for real-time signals.