#MarketGreedRising
To achieve simple and reliable trading, it is essential to understand the fundamentals and adhere to some basic principles. Here are some important foundations:
1. Understanding Trading:
- Trading is the process of buying and selling financial instruments with the aim of profiting from price fluctuations.
- Trading involves opening positions based on expectations of price movements in various markets such as stocks, currencies, and commodities.
- Trading is different from traditional investing, as it focuses on speculating on price direction without owning the asset.
2. Trading Basics for Beginners:
- Basic knowledge of the market and understanding key terms such as Contracts for Difference (CFD) and leverage.
- Awareness of risks, including market volatility and unexpected events, and the use of risk management tools such as stop-loss orders.
- Technical analysis that relies on studying charts, candlesticks, trend lines, and support and resistance zones.
- Fundamental analysis that involves studying news, reports, and economic policies.
3. Capital and Risk Management:
- Determine the risk percentage in each trade and use stop-loss orders to protect capital.
- Reduce leverage to avoid large losses. Diversify capital among multiple trades.