Trading - what is trading business
Trading - what is trading business
Simply put, trading is too much Which is a common economic concept Buying goods and services in -Involved in selling.Paid by the buyer to the seller Compensation or accessories between two parties Or buying and selling services. In the economy of producers and consumers Can be traded.International trade Countries for goods and services Otherwise the market gives a chance to make it bigger These things might not be available.
This is why an American customer is on Choose between Japanese, German or American cars Can take International (International) Trading As a result, there is greater competition in the market There are and therefore, more competitive prices, which A cheap thing to take to consumers Comes.In the financial market, trading means securities Refers to buying and selling, such as buying stock on the New York Stock Exchange.
What are the benefits of trading?
Traders can work for financial institutions, in this case they are a Through company funds and credits Will trade and their bonuses and salaries Will be given together.As an alternative, the traders themselves Can also work for, as they do them They can do business with their own money and credit. However, with this option they will keep all the profits to themselves. Some important trading topics:
1. Goods and services are offered in exchange for money in trading.
2. Trading within a country or different
Occurs between trading nations. In the case of international trading, this theory is assumed to be beneficial to all parties, although critics claim that it actually creates divisions between countries.
3. Economists recommend free trading between countries, but protectionism, such as tariffs, may present itself for political purposes. Types of Trading Types of Trading Depending on the subject
Below, we discuss in detail each of these types. Trading strategies based on:
1. Momentum trading
Momentum trading is a strategy where traders buy and sell according to the strength of recent price increases. Here traders find high percentage and volume mover stocks in a given period of time, move significantly to one side and try to get the desired profit by entering such stocks.Momentum upward in trading strategies Buy moving stocks and sell downward stocks Trying to make a profit.
2. Based on Mean Reversion The opposite of momentum trading is min Trade based on the concept of reversion To do.It stems from the idea that stocks Deviates from their historical average value They average their time The price keeps going back.In general, as a result of momentum trading Less probability of success but higher probability of profit And based on mean reversal Trading results in a high probability of success But there is a possibility of low profit.Based on deadlines:
1. Scalping:
This is a trading where the trader is one Inside the stock or other asset class and Bid-Ask Spread by Darting Outside Utilizing one from each trade Scalp small profits, more than once a day Each trade adds a small profit Gains big profits.
2. Day-Trading:One or more small price changes Within the same trading days with benefits Buying or selling any financial instrument Karake is called day trading.But the market closed for the trading day Before all positions are closed. Intraday trading and scalping traders Leveraged to trade and normal Gives the opportunity to gain more than.Leveraged trading is almost all intraday Traders fail for a long time The primary reason behind this.
3. Swing Trading:
Swing trading is a type of trading style Where short-term strategies are most Price changes in liquid stocks or indices The game is played to take advantage, either side Goes back or fades into an assembly And from one day to a few days or a few Lasts up to weeks.
4. Positional Trading:
In contrast to swing trading, positional The length of the trade is too much for trading More Positional trading is from a few weeks A few months and sometimes a few years Permanent trade.The longer the trade, the longer the investment Nearby positional trading.In general, the chances of success are day trading To increase from positional trading Stays.Since the long-term market structure Upstairs for most markets,The success of positional trade is a beautiful one There are possibilities.Analysis based on technology By:
1. Technical Trading:By technical trading charts and graphs Is meant.Surveillance lines on stocks or graphs Stocks are signs of staying together or leaving Indicates buying or selling. Technical trading of technical analysis Depends on and totally one On the price action depicted by the asset class Based.
2. Fundamental Trading:
Trading based on fundamental analysis, which Actual or expected income report, stock Like division, restructuring or acquisition Things like corporate events Checks.Fundamental analysis of long-term trade Which is more suitable for short-term pricing Avoids fluctuations or noise.
3. Techno-fundamental trading:
On both technical and fundamental analysis Trading based is techno fundamental Trading.In Techno Fundamental Trading, a Traders are based on fundamental analysis A few stock picks and technical Strategically based on analysis Determines entry and exit levels.Based on asset class
1. Equity Trading:
Equity trading is the company's financial market The buying and selling of shares or stocks, which is equity Also known as Most equity trading means stocks Via exchange or over-the-counter Buying shares of a public company as a product-Refers to selling.
2. Commodity trading
Commodity is about doing business extensively Resources.The products traded are usually four broad The categories are selected: Metals, Energy, Agriculture and Livestock And meat.Gold, silver, in metal products Includes platinum and copper.Energy products are included Crude oil, heating oil,Natural gas and petrol.Agricultural products include maize,Soybeans, wheat, rice, cocoa, coffee, cotton And sugar.Among cattle and meat products There are lean pigs, pigs Stomach, live cattle and feeding Cattle.
3. Crypto Trading:
Crypto trading or cryptocurrency trading It means trying to make a profit The future price movement of cryptocurrency The process of guessing.Other resource classes discussed above In comparison, crypto trading is a relatively New ideas.Conclusion This blog is based on four basic topics Discuss different types of trading
Has: trading strategies, trading timeframes,Trading Analysis and Asset Class Trading.The trading process of a trader Which is deeply related to his mentality Depending on various factors.Which is the opposite of a trading system Able to trade different types at the same time Maybe, a businessman of course From successfully backtested trades Profits will be difficult if they are traders
Deviates from the core of personality.On the other hand, a trader must have one When you will be able to lose the trading system Trades will be taken by the trader Which syncs with personality Provide a natural edge to the trader By Trading is in some ways more than scientific The art behind artistic and trading is diverse After understanding and trying the kind of trading Can be mastered.
So hopefully, what does trading mean?trading in Bengali) The matter is quite clear to you By the way
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