$GUN A trading operation (or "trade") is the buying or selling of a financial asset, such as stocks, currencies, cryptocurrencies, or commodities, with the aim of making a profit. This process involves entering and exiting positions in the market, usually over a short period of time, to benefit from price fluctuations.
Key elements of a trading operation:
Buying or selling assets:
One can buy an asset expecting its price to rise, or sell it short to benefit from a decline.
Entering and exiting positions:
Roughly, entering and exiting positions are buying or selling movements made in a market.
Making profits:
The main goal is to generate profits from the variations in the asset's price.
Leverage:
In trading, leverage allows one to operate with amounts of money greater than what one has in capital.
Risk:
Trading involves risks, such as the possibility of losing money if the market does not move as expected.
Tools:
Technical and fundamental analysis tools are used to assess market trends and make buying or selling decisions.
Strategies:
Traders use various strategies, such as scalping, day trading, swing trading, or position trading, depending on their goals and risk profile.
Trading plan:
A trading plan helps establish objectives, define strategies, and effectively manage risk.
