#DiversifyYourAssets Trading, simply put, is the process of buying and selling assets with the aim of profiting from the difference between the buying and selling price. These assets can include a wide range of financial instruments, such as:
* Stocks: Ownership shares in companies.
* Foreign exchange (forex): Trading various currency pairs.
* Commodities: Raw materials such as oil, gold, and wheat.
* Bonds: Debt instruments issued by governments or corporations.
* Cryptocurrencies: Decentralized currencies such as Bitcoin and Ethereum.
* Contracts for Difference (CFDs): Agreements to pay the difference in the price of an asset between the opening and closing times of the contract.
* Financial derivatives: Financial instruments that derive their value from another underlying asset (such as futures and options).
The primary objective of trading is to:
* Buy low: Expect the price of an asset to rise in the future.
* Sell high: Profit from the difference.
Or vice versa in some trading strategies:
* Sell high (short selling): Expect the price of an asset to fall in the future.
* Buy low: Profit from the difference. There are many trading methods and strategies, depending on:
* Time frame: Trading can be short-term (such as day trading and scalping) or long-term (such as swing trading and long-term investing).
* Tools used: Some traders rely on technical analysis.
