'Trading' is more than a simple exchange!

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Hello Friends, Greetings 🙏😊

To begin, I would like to explain that this post is focused on commerce, we will understand the basics of trading from an objective and analytical point of view to begin with.

Trading is a process of buying and selling in which it is expected to play with existing speculation in certain markets to obtain a benefit. It may seem simple, but it is what should always be taken into account.

Each asset in a certain market has what we call "market value" this defines the value of certain asset for its trade, value that will always be governed by the law of supply and demand and existing liquidity in that market.

Thanks to this law of supply and demand, the prices of the markets in the markets tend to change, the more offered this an asset, the more it lowered its price to be sold, between the defendant, it will be offered by the asset to be purchased . All this will be determined according to the liquidity of the market that is nothing more than level or degree that the value can be sold quickly, or at least possible, clearly in a market that runs out without liquidity will not be possible to sell an asset. It is important to trade assets that have high levels of liquidity and capitalization.

The basic goal of trading is to buy and sell assets to obtain a benefit. So why should the trading practice? Speculate. A simple and basic process that each trader must follow.

Buy an asset at a low value to sell it for a higher value than the original, or sell an asset to repurchase it future at a lower price. As we can notice is a kind of loop based on always getting a benefit, the real error is only going against this logical principle.

Clearly, to do trading it is not enough to want to buy low and sell high. The markets are manipulated greatly and we must understand that there is always an entity with power and superior experience that expects to stay with our values, or money, to see it in a simpler way, the only way to take advantage then consists of playing in favor From this manipulator, following it and trying to think as he would, of course, achieve this requires knowledge and strategy.

The fundamental thing to do trading is to carry out an analysis, clearly there are many things that can be taken into account, emerging, learning and building with time and experience, but the fundamental thing for anyone and that should never be forgotten are the following things:

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Fundamental analysis: this type of analysis is carried out by studying the asset to trade, we must seek information related to projects, investors, community position in favor of asset, its impact in general or problems facing, all with the aim of determining The degree of boom that owns and understanding the path that holds it, is important above all to be objective, if your panorama is positive, do not hesitate that with time its price will increase, if it is not, surely fall.

Technical analysis: This is where the graphics and statistics enter, with the fundamental analysis the trader seeks to find patterns in the price ranges that runs an asset in a market to determine purchase and sale points of the same one that looks favorable to obtain benefit. It is practiced especially in the short term and is a high risk strategy, indicators and patterns in trading are very useful but they need to be complemented between them and with fundamental analysis.

Analysis of feeling: Today we live in a media world, with a degree of almost instantaneous information distribution. The markets are largely controlled by the feelings of their investors, then when the positive or negative news starts circulating around an asset or courage, many times investors make a decision based on it and their emotions with respect to what It evokes to hear those news, fear, anxiety, happiness, greed. The study of these emotions in a market includes the analysis of feelings, often included with the fundamental.

There are trading styles and all kinds of things but the important thing is to know them about the march for now we have treated the most basic and I hope that it has been understood what composes it.

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