INTRODUCTION TO TRADING:: WHAT IS TRADING?
Trading is one of the most exciting and dynamic ways to get involved in the financial markets. It offers not only the chance to make financial gains, but also the opportunity to better understand the economy and markets.
In this article you will learn
- The basics of trading
- The differences between trading and investing
- Why trading is so popular
- How you can get started with trading
1. WHAT IS TRADING?
Trading describes the active buying and selling of financial instruments such as
- Shares (e.g. Apple, Tesla) 📈
- Foreign exchange (forex) (e.g. EUR/USD) 💱
- Commodities (e.g. gold, oil) ⛽
- Cryptocurrencies (e.g. Bitcoin, Ethereum) ₿
The aim is to realise profits from the price fluctuations of these assets.
A trader constantly monitors the market and looks for opportunities to profit from price rises or falls. Trading can take place within seconds (scalping) or over weeks (swing trading).
2. Trading vs. investing – What’s the difference?
The terms trading and investing are often confused, but they are fundamentally different:
While investors focus on long-term growth, traders actively trade to realise short-term profits.
3. Why is trading so popular?
Trading has grown enormously in popularity in recent years. The reasons for this are:
- Accessibility: thanks to online brokers, anyone can now trade using a smartphone. 📲
- Diversity: There are numerous markets and instruments, from shares to cryptocurrencies
- Flexibility: Traders can profit from rising AND falling prices.
- Fast profits: Unlike traditional investments, short-term profits are possible with trading.
Important: High profits go hand in hand with high risks. Good preparation and strategy are crucial.
4. How does trading work?
At the heart of trading are price charts, which show the movements of a financial instrument over time.
A typical example is the candlestick chart:
- Green candles represent rising prices.
- Red candles represent falling prices.
Here is a simplified example:
5. The first steps in trading
If you want to start trading, you need:
- Basic knowledge: Learn the markets you want to trade in.
- A broker: Choose a reliable provider with fair conditions.
- A plan: Determine which strategies you want to use.
- Risk management: Only use capital that you are prepared to lose.
Tip: Start with a demo account to practise risk-free.
Conclusion: Trading is an art
Trading is not a matter of luck, but a skill that is built up through knowledge, practice and discipline. It offers enormous opportunities, but also requires a clear head and good risk management.
You are now just one step away from taking your trading to the next level!
The information you’ve received here is just the beginning. Would you like to know how you can use it for yourself and what other secrets will lead you to successful trades?
There’s a lot more we can share with you – but only if you take the next step. Write to us now directly via our Telegram support account and we’ll show you how to deepen your knowledge and achieve your first successes.