Getting to Know Trading Deeper
The most popular term currently trading is buying and selling activities in capital markets such as the stock market, futures market, and foreign exchange (forex) market. Forex trading or also known as forex trading is trading currencies from different countries with the aim of making a profit. In this case, forex itself is short for Foreign Exchange or can be called a foreign exchange exchange. An example of forex trading would include buying Euros (the main European currency), while simultaneously selling USD (the American currency), which can be shortened to EUR or USD. In the minds of ordinary people, the meaning of forex trading is more on the activity of exchanging money at a Money Changer, namely buying and selling foreign currencies manually which is done through a money changer. In fact, forex trading is actually different from manual transactions like in Money Changer.
Trading Characteristics
Forex trading or what is also known as forex trading is trading currencies from different countries with trading not always profitable, but not necessarily detrimental. Although the logic is very simple, buy when the price goes down and sell when the price goes up. There are various sciences that a beginner should understand before making short-term trades. So, traders must understand the fundamentals of the object to be invested, for example stock trading. Traders cannot immediately buy any stock without knowing the potential profit, type of stock, stock price at the time of the IPO, to several other fundamentals that are influenced by many factors. The concept can be applied in any short term trading or investment. The higher the profit, the greater the risk. That is, no short-term trade can really prove profitable unless it is backed up by in-depth analysis. Especially for beginners, it's better to try investing in gold first before trying stocks so you can understand how it works first. If you have enough experience, are good at doing analysis and are ready to face big risks, then we can try to believe in other short-term investments, such as binary, forex, and Bitcoin. Make sure again that the trader understands all the risks in any chosen short-term trade. Do not be tempted by the cradle of getting big profits in a short time.
Trading Type
Trading has many types of trading, as described below:
1. Forex Trading
What is forex trading? In forex, trading is trading foreign currencies by taking advantage of currency exchange rates that fluctuate over a certain period of time. The way it works is different from exchanging money at a money changer. Short-term forex trading can be done online by depositing a certain amount of money first. Similar to short-term stock trading, but the object being traded is not the issuer's stock, but foreign currency. The advantages of short-term forex trading are indeed very large. However, it is directly proportional to the risk borne. We can be suddenly rich and suddenly bankrupt in no time.
2. Stock Trading
What is stock trading? The terms stock trading with stock investment are very different. Stock trading is buying and selling shares in the short term. Both offline and online via the stock application. While stock investment can be interpreted as saving stocks in the long term. The way stock trading works is very simple. Buy stocks when they go down, then sell when they go up. That way, we can get capital gains or profits from selling shares when the price rises. The method is not much different from other simple trading systems. For example, you buy chili for Rp. 50 thousand on Monday. The next day you resell the chili when the price rises to Rp. 70 thousand. This means that there is a profit (margin) of Rp. 20 thousand. That is an example of short-term trading of stocks in the capital market. Not without risk, short-term trading of stocks is one of the transactions that can make traders lose if the price of the shares purchased continues to fall.
Gold Trading
What is gold trading? Gold trading can only be done through a forex broker. Short-term gold trading is different from buying and selling gold manually through Pegadaian or PT Antam. Trading short-term gold also cannot be equated with investing in gold and saving gold. Short-term trading in gold is also different from investing in stocks in the capital market. With gold, it works in much the same way as short-term trading of stocks and forex. The difference is that the object being traded is in the form of intangible gold. The short-term gold trading market is the same as forex which is open 24 hours from Monday to Friday. Meanwhile, the capital market where stock trading is only open at certain times (working hours), Monday – Friday. Short-term trading in gold is symbolized by XAU in pairs with the USD. The way it works is that investors buy when the US dollar goes down. Conversely, investors sell if the US dollar rises. Because the price of the US dollar is very dynamic, we need to carefully monitor the ups and downs of gold or the dollar at the same time. Dollar prices can be influenced by several factors such as inflation, central bank monetary policy, and the level of the United States economy.
Note:
Comments
Post a Comment