#trading

Trading is the activity of buying and selling financial assets with the aim of making profits in the short, medium, or long term. In the technical field, trading relies on market data analysis, statistical indicators, and algorithmic strategies.

There are several types of trading, including:

Scalping: very short-term operations (seconds or minutes), seeking small repeated gains.

Day trading: opening and closing positions within the same day, without leaving trades open overnight.

Swing trading: positions held for days or weeks, taking advantage of intermediate trend movements.

Position trading: long-term approach, based on fundamental and technical analysis.

From a technical perspective, traders use tools such as:

Technical analysis: study of charts, candlestick patterns, and tools such as RSI, MACD, moving averages, or Fibonacci retracements.

Quantitative analysis: use of statistical and mathematical models to estimate probabilities of future movements.

Algorithmic trading: implementation of algorithms that execute orders automatically based on predefined conditions.

Backtesting: historical simulation of strategies to validate their profitability and risk management before applying them in real-time.

Additionally, risk management is crucial: use of stop-loss, position size control, and asset diversification.

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