#TradingTypes101 Trading is a type of financial activity that involves the buying and selling of assets aiming to make a profit through speculation on price fluctuations. For example, if you buy a stock believing that the price will rise in the near future and sell it for a profit, that is trading.
Among the assets involved, in addition to stocks, we can also have currencies, commodities, and cryptocurrencies, among others. The main focus is to take advantage of when these assets are at a lower price and sell at a higher price, profiting from the operation.
In general, one of the main characteristics of this type of operation is the short term, so trades usually last minutes, hours, a few days, or at most, weeks.
Additionally, although speculation is the basis of trading, it is possible to use various strategies and tools to analyze the market, such as technical analysis, to increase the accuracy of forecasts.