Trading Agencies Near Me
Types of Trading
- Day Trading: Buying and selling within the same trading day.
- Swing Trading: Holding positions for several days to capture short-term trends.
- Position Trading: Holding trades for weeks or months, based on long-term trends.
- Scalping
Financial Instruments Traded
- Stocks: Shares of ownership in companies.
- Bonds: Debt instruments issued by governments or corporations.
- Commodities: Physical goods like gold, oil, or wheat.
- Currencies (Forex): Trading pairs of global currencies
Essential Trading Concepts
- Bid and Ask Price: The highest price a buyer is willing to pay and the lowest a seller will accept.
- Spread: Difference between the bid and ask price.
- Leverage: Borrowing funds to increase position size.
Trading Strategies
- Trend Following: Trading in the direction of the prevailing trend.
- Breakout Trading: Entering trades when price breaks through a support/resistance level.
- Mean Reversion: Betting that price will revert to its average.
Risk Management
- Stop-Loss Orders: Automatically exit a trade at a set loss limit.
- Take-Profit Orders: Automatically exit when a certain profit is reached.
- Position Sizing: Controlling trade size to manage risk.