#TradingTools101

It is the essential introduction to the world of trading, designed for beginners who want to understand how financial markets work. At its core, trading involves the buying and selling of financial assets such as stocks, currencies (Forex), commodities, or indices, with the aim of making profits from their price movements.

There are various types of trading, each with its own characteristics and risks:

* Stock Trading: Involves buying and selling shares in companies. It seeks to benefit from the appreciation or depreciation of their prices.

* Currency Trading (Forex): It is the market for exchanging currencies. Traders speculate on the fluctuation of exchange rates between different currencies.

* Commodity Trading: Goods such as gold, silver, oil, natural gas, or agricultural products are traded.

* Index Trading: Allows speculation on the performance of a group of stocks or a specific economic sector, rather than individual stocks.

* Derivatives Trading (Options and CFDs): These are contracts whose value is "derived" from an underlying asset. They offer leverage, which can amplify both gains and losses.

In addition to the types of assets, trading is also classified by the time horizon of the operations:

* Day Trading: Operations that are opened and closed within the same day, avoiding holding open positions overnight.

* Swing Trading: Operations that last from a few days to several weeks, seeking to capture short or medium-term price movements.

* Position Trading: Involves holding operations for weeks, months, or even years, based on long-term fundamental analysis.