Hii everyone, i am your friend Mahil here with another blog,today we will discuss about todays trending topic Trading ,as i am a Trader ,i will guide you, that will help you in your trading journey.
Trading can be a great way to earn money if done correctly. However, it can also be risky if you are not careful. This guide will introduce you to the basics of trading, including the different types of markets, the types of assets you can trade, and the tools you need to get started.
Types of Markets
Before we dive into the different types of assets you can trade, let’s first talk about the types of markets. There are two main types of markets: the stock market and the foreign exchange (forex) market.
The stock market is where you can buy and sell shares of publicly traded companies. When you buy a share of a company, you are essentially buying a small piece of ownership in that company. The stock market is a great place to invest in companies you believe will grow and perform well.
The forex market, on the other hand, is where you can trade different currencies. The value of a currency is always changing relative to other currencies, so you can buy one currency and sell it when its value increases to make a profit. The forex market is the largest and most liquid financial market in the world.
Types of Assets
Now that we’ve talked about the different types of markets, let’s discuss the types of assets you can trade within those markets. In the stock market, you can trade stocks, options, and exchange-traded funds (ETFs).
Stocks are shares of ownership in a company, as mentioned earlier. When a company does well, the value of its stock usually goes up, and when a company performs poorly, the value of its stock usually goes down.
Options are contracts that give you the right, but not the obligation, to buy or sell a stock at a certain price within a certain timeframe. Options can be used to make money in a variety of ways, such as by betting that a stock’s price will go up or down.
ETFs are funds that hold a basket of stocks, bonds, or other assets. They are a good way to diversify your portfolio, which means spreading your investments across different types of assets to reduce your risk.
In the forex market, you can trade different currencies. The most commonly traded currencies are the US dollar, the euro, the Japanese yen, the British pound, and the Swiss franc. When you trade currencies, you are essentially betting that the value of one currency will increase or decrease relative to another currency.
today we just discussed the basics of trading , later on we will cover deeply, so lets end this here, see you again in my another blog , stay tuned .
written by,
Mahil joshi