Trading

Trading is a basic economic concept and it's simply the exchange or buying and selling of services or goods between two(2) or more parties. Trading the financial market is not different, It's all about buying and selling financial instruments with the goal of making a profit. these instruments can be a variety of assets that have been assigned a financial value that goes up or down. Market participants or traders make trading decisions on whatever direction these assets go. Financial markets to find assets that can be traded are:

  • Forex
  • Stocks
  • Futures
  • Indexes
  • ETFs and so on..

Whatever market or asset you decide to trade , The goal is to become good at making trading decisions and making profit.

Trading the market is a risky endeavor with the possibilities of encountering huge losses if effective risk management is not used. But the reward potentials are huge too. To get proficient at trading or become a consistently profitable trader you have to understand how to analyze the market, Decide what type of trader you want to be, Learn how to use simple to complex analytical tools and most importantly work on having a healthy mindset.

The bad news is, You'll not learn all this in a day. trading is a journey in itself with so much to learn and understand. you probably need to have a few failures along the way to get the much needed experience and become good at this. Or just look for a mentor or trading professional that will guide and help you avoid most of the mistakes. the choice is yours. The good news is, becoming good at trading is like investing in yourself and owning a life-long skill that can never be taken from you and that will come in handy at several points in your life. the ball is your court.

Millions of people try their hands at trading the market. But over 75% fail, quit and walk away a little poorer and wiser without reaching their potential. Most of these people do not know or understand why prices move higher and lower, and other vital trading concept and rules. They treat the market like a casino, chase hot tips and end up wherever they end up.......

TRADING AND INVESTING DIFFERENCES

The main difference between a trader and an investor is the duration for which they hold on to their assets. Traders make their profits from buying low and selling high or selling high while buying low. This is done within a short period of time from minutes, hours, days to weeks and months sometimes. Investors on the other hand usually aim to buy at a favorable price and take ownership of the asset. investors make profit from holding the asset and selling at a higher value. they also earn profits from Dividends.

HOW TRADING WORKS

A basic and important factor to remember in trading is supply and demand. when there are more buyers and sellers, demand is higher and the price of the asset goes up. If there are more sellers, Demand is reduced, Price goes down. When you trade, You will make profit   if the market price of the asset you opened a position on moves in the right direction and you will lose money if the price goes the wrong direction. you can get access to trading assets on an exchange or OTC

TRADING BENEFITS

As a trader, You can work for financial institutions if you get good at it or become a professional, these means you'll have access to trade with the company funds and credits, and get paid. or you you can decide to work and trade for yourself, with your money and keep all the profits to yourself.

Trading the financial market is risky and not for the the faint of heart.. It requires deep knowledge and understanding of technical and macro-economic concepts, price action, chart reading, indicators and much more. lots of diligence and discipline is required on this journey but it will be worth all the effort in the end.

For more information on how to begin your trading career or get in touch with a trading professional, you can send us a message here at Sampedia, we'll be glad to offer some assistance.