What Is Trading?.

Trading (or operating) consists of buying and selling stocks or other financial products generally short-term, normally even on the same day. It is not actual investment, it is speculation, trying to take advantage of small price differences to achieve immediate profitability, although this presents a high risk.
To carry out trading, just need a computer and open an account with a broker, this can be a bank or a financial institution where the money will be deposited.

To make trading we need to know three basic concepts:

In the trading Psychology: is based on the control of emotions, the feelings have a direct impact on the capital account, because if these disappointed, upset or unsure, the account will suffer it. Emotional control is the main weapon that a trader's success has, greed and fear take a trader to ruin, so you have to use the intellect rather than the instinct as a guide, and learn how to control the emotional state.

Proper risk management: risk management aims to survival of the account and secondly the ability to achieve consistent results. Professional traders do not risk more than 2% in each operation.

Trading strategy: all the knowledge and technical learning needs to end in a good trading strategy, which is a plan that adapt to determine entry and exit signals.


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