Basic principles of trading
Tue Aug 30 2022
Hope you are doing well 😍
Cause today we are gonna to speak about basic principles of trading
💨 Let’s go
⚪️ Trading is a fundamental economic concept that involves buying at a low price and selling at a high price assets. It includes risk. To understand how low or high the price of an asset is, you must follow the rest of the principles of trading.
⚪️ Keep the strategy
Before you start investing, you should ask yourself a few questions.
• How fast do I want to make a profit?
• What profit can I expect from my investment?
• What level of risk is best for me?
Depending on the answers, you should make your own strategy.
⚪️ Study the theory of trading
Trading in the stock market is very similar to ordinary commodity trading. It clearly shows the basic concepts of trade like supply, demand and competition.
⚪️ Use analytical methods
We are talking about two methods of price forecasting: technical and fundamental analysis. These methods build the basic foundations of trading. It is believed that fundamental analysis is better for long term investment and technical analysis is better for short term investment.
⚪️ Plan expenses
It is very important for a trader to understand how much money he can spend. To do this, you need to set limits for yourself and then keep records of income and expenses.
⚪️ Don't let money stagnate
The best way to make money disappear is to put it in an account and spend it slowly.
✔️ Hope this post was informative.
Do you follow these principles? 🤔
How Much Money Do You Need to Start Trading? 😃