#TradingTypes101 Trading involves buying and selling financial instruments such as stocks, bonds, commodities, or currencies with the aim of making profits. Unlike long-term investing, trading focuses on short-term market movements to capture potential gains. Whether you trade stocks, currencies, or cryptocurrencies, understanding the basics is crucial for success.
1. Market Fundamentals
Types of markets: there are several financial markets where trading transactions take place, including the stock market, the foreign exchange market, the commodities market, and the cryptocurrency market.
Trading instruments: traders can trade various instruments such as stocks (equity trading), currencies (forex trading), commodities (like gold or oil), and cryptocurrencies (like Bitcoin or Ethereum).