What is Trading?
In its simplest form, trading is the act of buying and selling assets to make a profit.
Investing is like planting an oak tree. You buy a sapling (a stock), nurture it for many years, and let it grow into something large and valuable. It's a long-term game.
Trading is like buying and selling firewood. You buy it, hold it for a short time (days, weeks, or months), and sell it when you think the price has gone up enough to make a profit. It's a short-term game.
The most common traded assets are:
Stocks: Shares of ownership in a public company (e.g., Apple, Tesla).
ETFs: Baskets of stocks or bonds that trade like a single stock (e.g., an ETF that tracks the entire S&P 500).
Cryptocurrencies: Digital currencies like Bitcoin and Ethereum.
Forex: Currencies, like buying Euros with US Dollars.
Options & Futures: More complex contracts that are not recommended for beginners.
