How Trading Works
Trading is the buying and selling of financial instruments in order to make a profit. These instruments range from a variety of assets that are assigned a financial value that can go up or down – and you can trade on the direction they’ll take. You may have heard about stocks, shares and funds.
Trading Basics
Stock trading involves buying and selling stocks frequently in an attempt to time the market. The goal of stock traders is to capitalize on short-term market events to sell stocks for a profit, or buy stocks at a low.
Some stock traders are day traders, which means they buy and sell several times throughout the day.
Investing or Trading
Investing is long-term and has lesser risk, while trading is short-term and has more risk. Also, both have the potential to earn profits. Trading can be thrilling to earn quick cash, but it is like gambling which can also lead to big losses. Investing leads to long-term wins but with few severe losses.
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