Participants in financial markets are divided into two main categories: traders and investors.
Trading:
Time horizon: short to medium term (hours, days, or weeks).
Goal: take advantage of ongoing price fluctuations in the market to achieve quick, direct profits.
Approach: focuses primarily on technical analysis, charts, and tracking the momentum of price movement.
Risk: Faster and higher, and it requires strict discipline and tight risk management.
Investing:
Time Horizon: Long-term (years or decades).
Goal: Grow capital, build wealth, and accumulate distributed profits (Dividends) over time.
Approach: Focuses on fundamental analysis, the strength of the company’s finances, and the asset’s intrinsic value.
Risk: Less affected by temporary daily or weekly fluctuations.
A fundamental and simple principle in the world of trading:
Buy Order (Long Order): You buy the stock or currency when the price is low (e.g., at a support level), then wait for the price to rise to sell it at a higher price and make a profit from the price difference.
Sell Order (Short Order): In some markets (such as Forex and CFDs), you can also profit when prices fall; you sell at a higher price and buy to close the trade at a lower price.
📌 Summary of Day One:
Trading is a profession that depends on taking advantage of opportunities in the daily price movements. Success requires understanding how to distinguish it from long-term investing.
#السلسلة_التعليمية #cryptouniverseofficial #TradingCommunity #ذهب