What is trading?

Trading is the activity of buying and selling financial assets such as stocks, cryptocurrencies, forex, or commodities with the aim of making a profit from price fluctuations. Unlike long-term investing, trading focuses on high trading frequency, sometimes within a day (day trading) or even within minutes (scalping).

Why are more and more people choosing trading?

• High flexibility: You can trade anytime, just need internet.

• Attractive profitability: Traders can profit both when the market goes up and down.

• Improve personal financial management skills: Trading forces you to understand risks, discipline, and control emotions.

Popular trading types

1. Day Trading

• Buy and sell within the same day.

• Suitable for those with time and quick reflexes.

2. Swing Trading

• Hold positions from a few days to a few weeks.

• Technical and fundamental analysis are used in parallel.

3. Scalping

• Small profits in a very short time, usually measured in minutes.

• Needs speed, supporting tools, and experience.

4. Position Trading

• Hold positions for a longer time, often several months.

• Suitable for those who follow the investment style.

Markets you can trade

• Crypto: Highlighted by BTC, ETH, BNB... 24/7 market, highly volatile.

• Forex: Trading national currencies like EUR/USD, USD/JPY...

• Securities: Stocks of listed companies.

• Commodities: Gold, oil, coffee...

5 steps to start trading for beginners

1. Choose a reputable platform

For example: Binance – the world's number 1 crypto trading platform with a user-friendly interface and high security.

2. Identify the market you want to participate in

You should choose a market to master before expanding to other asset types.

3. Learn basic technical analysis

Understanding how to read candlestick charts, RSI indicator, MACD, and trading volume is an important foundation for effective trading.

4. Capital and risk management

Only use 1-3% of total capital for each trade. Set Stop Loss to protect the account.

5. Practice with a demo account

Before putting real money into the market, practice and test strategies through a demo account.

Mistakes to avoid when starting trading

• Trade based on emotions: Don't let greed and fear influence your decisions.

• No clear strategy: Trading is not a game of chance.

• Ignore capital management: One wrong trade can wipe out your account.

• Overtrading: Quality over quantity. Know when to stay out of the market.

#CryptoMindset #TraderLife