What is trading?
Trading is the activity of buying and selling financial assets such as stocks, cryptocurrencies, forex, or commodities with the aim of making a profit from price movements. Unlike long-term investing, trading focuses on high trading frequency, sometimes within a day (day trading) or even within minutes (scalping).
Why are more and more people choosing trading?
1. High flexibility: You can trade anytime, just need internet.
2. Attractive profit potential: Traders can profit whether the market goes up or down.
3. Increase personal financial management skills: Trading forces you to understand risk, discipline, and emotional control.
Popular types of trading
1. Day Trading
• Buy and sell within the same day.
• Suitable for those with time and quick reflexes.
2. Swing Trading
• Hold trades for a few days to a few weeks.
• Technical and fundamental analysis are used in parallel.
3. Scalping
• Small profits in a very short time, usually measured in minutes.
• Requires speed, supportive tools, and experience.
4. Position Trading
• Hold trades for a longer time, often for several months.
• Suitable for those following an investment philosophy.
Markets you can trade
• Crypto: Notable with BTC, ETH, BNB… 24/7 market, highly volatile.
• Forex: Trading national currencies like EUR/USD, USD/JPY…
• Securities: Stocks of listed companies.
• Commodities: Gold, oil, coffee…
5 steps to start trading for beginners
1. Choose a reputable platform
For example: Binance – the number 1 crypto trading platform in the world with a user-friendly interface and high security.
2. Identify the market you want to participate in
You should choose one market to master before expanding to other asset types.
3. Learn basic technical analysis
Understanding how to read candlestick charts, RSI indicators, MACD, and trading volumes is essential for effective trading.
4. Capital and risk management
Only use 1-3% of total capital for each trade. Set Stop Loss to protect the account.
5. Practice with a demo account
Before putting real money into the market, practice and test strategies through a demo account.
Mistakes to avoid when starting trading
• Trading based on emotions: Don't let greed and fear dictate decisions.
• No clear strategy: Trading is not a game of chance.
• Ignoring capital management: A wrong trade can wipe out your account.
• Overtrading: Quality over quantity. Know when to stay out of the market.
