Trading is actively buying and selling financial instruments to profit from short- to medium-term price movements. Unlike investing, which is based on the long-term holding of assets (a "buy and hold" strategy) and a belief in their fundamental growth, trading is focused on capitalizing on volatility and price fluctuations. A trader aims to buy low and sell high, or vice versa (known as short selling), within a time frame ranging from a few seconds to several weeks or months.
A wide range of assets can be traded, including stocks, currency pairs (Forex), commodities (like gold or oil), and, more recently, cryptocurrencies. Many trading styles differ in the frequency and duration of trades—from day trading, where all positions are opened and closed within a single day, to swing trading, which focuses on trends lasting several days or weeks. Successful trading requires deep market knowledge, discipline, and careful risk management.
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