Trading is a financial activity that involves buying and selling financial products such as stocks, bonds, currencies, and commodities.that is, those that can be easily converted into money and do not lose value over time, through an online platform.

(Also read: What is being a trader, what is it and how to start?).

According to the web portal ‘Admiral Markets’, trading is a type of investment to obtain returns, but at the same time involves significant risks that must be managed in the best way.

merchants can operate independentlyusing online trading platforms or work for financial institutions such as banks, investment funds or brokerage firms.

But, do you know what to study to trade? we tell you

According to the ‘MDC Trading Academy’ web portal, to study trading First you must know your current situation in relation to the capital available to invest and the time you can dedicate to study and practice.. According to these aspects you can choose a negotiation style.

Before you start trading, it is crucial to get proper education and training, and have a clear understanding of the risks involved.

The following are three of the best-known styles of trading:

1. Swing trades

Swing trading is a trading strategy that seeks to take advantage of short- and medium-term price movements in financial markets.

Swing traders seek to identify price trends and patterns that may generate profit in the near future. They often use technical analysis to identify entry and exit points, as well as indicators and chart analysis tools.

The goal is to capture larger price movements that occur within an established trend.

(Keep reading: Trading: Types of Fraud and How to Avoid Losing Your Assets.)

2. Daily operations

Day trading is a trading strategy in which positions are opened and closed on the same day.

Day traders seek to take advantage of short-term price fluctuations in the financial markets, with the goal of making quick profits. They mainly use technical analysis to identify patterns, trends, and key levels on price charts.

In addition, they look for entry and exit opportunities based on technical indicators and take profit targets and stop losses to manage risk.

3. Waxing

Scalping is a high frequency trading strategy that You seek to make small but quick profits by placing multiple trades in a short period of time.

Resellers usually use technical analysis techniques and speed tools, such as the use of very tight limit and stop loss orders, to quickly enter and exit the market. Risk management is essential in scalping, as trades are held open for a very short time.

Such a strategy is based on the premise that small price movements will add up to significant profits as multiple trades are made.

(Of interest: Do you trade or buy shares? Bancolombia launches an ‘app’ to make it easier).

Before you go into business, educate yourself, educate yourself and practice on trading simulators.

Benefits of studying trading

1. Earning Potential: opportunity to make significant profits in the financial markets.

2. Flexibility and autonomy: Ability to work independently and set your own hours.

3. Diversification: Access a wide range of financial markets to diversify investments.

4. Additional income: potential to generate additional income or turn trading into a primary source of income.

5. Skill development: opportunity to acquire valuable knowledge and skills in analysis, decision making and risk management.

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