TRADING BASICS FOR BEGINNERS INVESTING
INTRODUCTION TO TRADING BASICS FOR BEGINNERS INVESTING Understanding Trading: Definition and Purpose Trading is a fundamental aspect of financial markets, involving the buying and selling of assets like stocks, bonds, commodities, currencies, and derivatives. But what exactly is trading, and why is it so crucial in our economy? Let’s delve into its definition, purpose, and the mechanics behind it. What is Trading? At its core, trading is the exchange of goods or services. In financial markets, this exchange usually involves assets that have intrinsic value. Here’s a breakdown of key components: Assets: These can be tangible (like commodities) or intangible (like stocks and bonds). Traders seek to buy low and sell high, capitalizing on price fluctuations. Market Participants: This includes individual investors, institutional investors, brokers, and market makers. Each participant plays a role in the liquidity and price discovery of the market. Types of Trading: Day Trading: Involves b
