
"Trading is the process of buying and selling financial assets such as stocks, currencies, commodities, or cryptocurrencies with the goal of making a profit. Unlike long-term investing, trading often focuses on short-term price movements. Today, trading has become accessible to ordinary people through online platforms and global exchanges like the New York Stock Exchange, NASDAQ, and regional markets such as the Pakistan Stock Exchange."
"At its core, trading is based on price changes. Traders attempt to buy an asset at a lower price and sell it at a higher price. Prices move due to supply and demand, economic news, company performance, global events, and investor psychology."
"Day trading involves opening and closing trades within the same day. Traders try to profit from small price movements using technical charts and indicators. Swing traders hold assets for several days or weeks to capture medium-term trends. Position trading is closer to investing, with traders holding assets for months or even years based on long-term trends and economic outlook."
Trading is the practice of buying and selling financial assets including stocks, currencies, commodities, and cryptocurrencies to generate profits. Unlike long-term investing, trading emphasizes short-term price movements and has become accessible to ordinary people through online platforms and global exchanges. Prices fluctuate based on supply and demand, economic news, company performance, global events, and investor psychology. Traders profit by purchasing assets at lower prices and selling at higher prices. Three major trading types exist: day trading involves opening and closing positions within one day with high stress but frequent opportunities; swing trading holds assets for days or weeks capturing medium-term trends; position trading mirrors investing by holding assets for months or years based on long-term trends. Trading occurs across multiple markets including stock markets, forex markets, and commodity exchanges.
Read at Business Matters
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