TRADING
What Is Trading? (Easy Summary)
**Trading is the activity of buying and selling financial assets** – such as company stocks, currencies (dollar, euro), cryptocurrencies (Bitcoin, Ethereum), or commodities (gold, oil) – with the aim of **profiting from the price fluctuations** of these assets.
Think of it this way:
* You **buy** something hoping that the price will **rise**, so you can later **sell it for a higher price**.
* Or you might even **sell** something you don't own (with the intention of buying it back later) hoping that the price will **fall**, so you can then **buy it back at a lower price**.
A person who engages in trading is called a **trader**. They use analyses (charts, news, etc.) to try to forecast where the price of an asset is headed and, consequently, make their buying and selling decisions.
### Key Points to Understand Trading:
* **Goal:** To profit from the difference between buying and selling prices.
* **Time:** Can be very short-term (minutes or hours, in "Day Trade"), medium-term (days or weeks, in "Swing Trade"), or long-term (months or years, in "Position Trade").
* **Risk:** It is a high-risk activity. There is no guarantee of profit, and it is possible to lose money quickly.
* **Knowledge:** Requires study, discipline, and emotional control to analyze the market and make decisions.
In summary, trading is **speculating on price movements** in an attempt to make money. It is like a game of chess where you try to predict the next moves of the market.
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Want to know more about a specific type of trading, like Day Trade, or the platforms used for it?