top of page

Trading

trading.jpg

Trading is a new form of investment and the search for profitability that has become very popular in recent years thanks to the advancement of technology and information systems.

Trading refers to speculation based on technical analysis, while financial markets search with perishable products to delay consumption in time and not be affected by the forces of supply and demand.

In other words, operations within trading are based on:
On the one hand, buying assets to sell them at a higher price.
On the other hand, selling assets to buy them later at a lower price.

Trading has become popular in recent years, and one of the reasons why it has become popular is because of the entry of new technologies. Thanks to new technologies, specialized online platforms have emerged, through which it is possible to operate, and can act as intermediaries for operations.

​ What types of Trading Exist?
As we have mentioned before, there are currently different modalities / types of trading. The types of trading that we can find differ in the time in which the open operations are kept.
 

Day trading
First of all, when we talk about Day trading we refer to those operations that the investor opens and closes within the same day. That is, it carries out the negotiation explained above, whether it is a purchase or a sale, in a single day. This modality is within short-term investments. In this type of investment, the operations do not remain open for more than one day.

Scalping
When we talk about Scalping we refer to those operations in which the investor operates in very short periods, throughout the day. These periods can even be seconds or minutes.
​
Swing trading
It is a trading modality that allows you to operate in the financial markets in the medium term. When we talk about swing trading we refer to those operations that can be left open at the end of the day. They usually last about 10 days.

Trend Trading
Also known as Directional Trading. This type of trading uses market trends to design its strategy. This type of trading allows you to operate in the financial markets in the long term. When we talk about Trend or Directional Trading, we refer to those operations that can be left open for weeks, months or even years.

Social trading
This is the name given to a new investment modality that is based on connecting a community of users or traders taking advantage of social networks. In this way, more advanced traders share their strategies with beginners, who can follow, learn and copy the most experienced and successful investors.

To start trading, the first thing you should do is open an account with a specialized and reputable broker. Once you have your account, you will have access to specialized platforms where you can trade by issuing buy and sell orders that will be executed in the markets for you.


​

​

© 2021 by I undertake finance. entrepreneurship@gmail.com

bottom of page