Trading involves buying and selling financial instruments like stocks to take advantage of price fluctuations in these assets.
Faq’s
Frequently Asked Question
Choose a trading platform that suits you. Different platforms support different markets (such as stocks, forex, cryptocurrencies, etc.), and they also vary in terms of fees and functionalities.
Subscribe to financial news & reports, follow the economic calendar, and keep track of market events. Regularly summarizing information and optimizing your trading strategy will help you better adapt to market changes!
1. By time frame: Day trading (short-term), swing
trading (medium-term), long-term investing
(long-term).
2. By market type: Stocks, forex, cryptocurrencies,
futures, options, commodities, etc.
3. By trading strategy: Quantitative trading, arbitrage
trading, hedging, social trading, etc.
Trading is not suitable for everyone. It requires capital, knowledge, patience, discipline, and the ability to control emotions. If you cannot accept losses or do not have the time to learn market rules, trading may not be for you. However, if you have good risk management skills and are willing to learn, trading can be a high-reward investment method.
Fundamental Analysis (FA) is a method of evaluating an asset's intrinsic value by studying factors such as the company's financial condition, macroeconomics, and industry trends to determine if the asset is undervalued or overvalued. It is applicable to markets such as stocks, forex, commodities, and cryptocurrencies.
| Risk Type | Main Manifestation | Reducing Method |
|---|---|---|
| Market Risk | Price fluctuations leading to losses | Set stop-losses, diversify investments |
| Liquidity Risk | Unable to execute trades quickly | Choose highly liquid assets |
| Credit Risk | Platform bankruptcy, counterparty default | Choose regulated platforms |
| Leverage Risk | Excessive leverage leading to margin calls | Limit leverage ratios |
| Operational Risk | Input errors, system crashes | Pre-trade checks, use backup devices |
| Regulatory Risk | Policy changes affecting the market | Stay informed about regulations, choose compliant markets |
| Geopolitical Risk | Wars, sanctions affecting the market | Monitor global news, allocate safe-haven assets |
| Psychological Risk | Emotions affecting trading decisions | Set trading rules, control trading frequency |
| Black Swan Event | Unpredictable market crashes | Diversify assets, keep emergency funds |
