The term trading is a very simple concept – it is dealing or exchanging of money and product or services you want to buy or consume. A process of buying and selling goods or in other words trading is a shifting of the ownership of goods or services for money or any other goods or service.
Commerce or trade can be done either online or offline and most of the people prefer online since it is easy, faster and doesn’t consume much time.
There are different methods of trading and a few of them are mentioned below:
1. Patterns- oldest method of trading used for forecasting price movement.
2. Momentum- It is used when the share, bond, stock or any instrument which moves in a steady pace.
3. Support & resistance- S/R can be done for different time frames and for intra-trading stocks.
4. Tells- You can discuss the mood of market through tells.
5. Reversion to mean- This involves scientific maths like deviation and used by scientist or engineers.
There are many types of products that you can deal in and few are explained below:
1. Forex – Foreign exchange is a trading of currencies, a very popular trading method and it is based on fluctuation in the currency values. It has a large market of trading across globe and it includes all the currencies in the world.
2. CFDS – It is the easiest instrument to trade in and you get the benefits and risk of owning a security without owning it. In other words it mirrors the movement of asset underlying it. The margin requirement is low and it requires a small amount of money to take a large portion.
3. Binary – In the global market binary or digital is a simple way to trade with fluctuation in price. When the price of the method rise is known as “call” and the when the value of asset falls it is called “put” option.
4. Spread betting – It is a way of speculating a price movement of security, the tax efficient way wherein you can easily access the financial market tax free. Spread betting from ETX Capital is a platform allows you to choose different trading instruments including binary, commodity trading and more.
5. Equities– This trading is nothing but buying and selling of shares or stock of a large outfit or a company. This represents ownership in the company or an organization. It means to raise the fixed cost method on the bases of equity share capital.
6. Commodities – The word commodity itself indicates a trading in the commodity instead of stocks or shares. It is the sophisticated type of trading and it is done on open exchange which means the price changes every day.
Understanding the norms and ways of trading under the advice of professional will certainly help you in getting good returns.