Trading 101

Introduction to Trading

Trading is the act of buying and selling financial instruments such as stocks, bonds, commodities, currencies, and derivatives. The goal is to make a profit from the price movements of these assets.

What is Trading?

Trading involves speculating on the price movements of financial assets. Unlike investing, which typically involves buying and holding assets for the long term, trading focuses on short-term price movements.

Types of Trading

• Day Trading: Buying and selling within the same day
• Swing Trading: Holding positions for several days to weeks
• Position Trading: Holding positions for weeks to months
• Scalping: Making many small trades for small profits