Trading for Beginners: A Beginner's Guide to the Art of Buying and Selling Financial Assets like Stocks,

Trading is the activity of buying and selling financial assets for entertainment or profit. It is not only about stocks, traders also trade bonds commodities and currency among others cryptocurrency. You know how some folks make money by "buying low and selling high," you are already ahead of the game with trading.

How Trading Works

Basically, trading is predicting the future price of an asset. If they think that, say gold will go up in the next few months ELS is bought solely in gold, with a plan to sell the same later on time of price surge making profit on each transaction. Of course, that's just the nature of markets and price drops from a few years forward could happen. This is the part of the strategy and wisdom Traders Use Different Techniques To Predium Price Movements Technical Analysis: This includes analyzing charts and past price action to get an idea of where the market might go next. This can be either on a Fundamental or Event level where one looks to the economic sense also called Real Value of business (Fundamental) and other may look for new happening in company after which he will price an asset.

Types of Trading

Based on how often trades are made and how long positions are held, there are different trading styles:

Day Trading  – Buy trade at one-go tb @ your SL/take profit — to be closed in the same day ScalpingSwing/FibonacciRetracement/Positions Investing0–5 Mins Trading/Gurlesque-pattern-short-term_default_The Canadian- Looney CounselorsOTM(EIF)Carebears/stdc.default!!! Their goal is to capitalize on small price fluctuations. Swing Trading — Swing traders keep their assets anywhere from a few days to weeks, in anticipation of capitalizing on expected market swings. Position Trading: This is a type of traders that keeps his trades for months or years anticipating big price movements and hence make larger gains. Scalping: This is a hyper-speed strategy with quick transactions within seconds or few minutes for small profits.