Here’s a slightly expanded version of trading in short with more clarity:
What is Trading?
Trading is the process of buying and selling financial instruments like stocks,
currencies, commodities, or cryptocurrencies to profit from short- or medium-
term price movements.
Types of Trading:
1. Scalping – Quick trades lasting seconds or minutes.
2. Day Trading – All positions closed within the same day.
3. Swing Trading – Holding trades for a few days to capture larger moves.
4. Position Trading – Longer-term trades based on major trends.
Key Elements of Trading:
Technical Analysis: Reading charts, patterns, and indicators.
Fundamental Analysis: Using news, earnings, or macro data.
Risk Management: Using stop loss, proper position sizing.
Trading Psychology: Controlling emotions, being disciplined.
Goal of Trading:
The main aim is to capitalize on market volatility by identifying entry and exit
points with an edge that gives a higher probability of success over time.
If you’d like a 1-minute explainer or visual guide, I can provide that too.