Complete Knowledge of Trading for Beginners


Trading is a very good business for everyone, but before involving in this business we need to know the basic concept of trading. The basic meaning of trading is that multiple parties participate in the voluntary negotiation and the exchange of one’s goods and services for desired goods. If we talk about financial market, than trading means performing a transaction that involves the selling and purchasing of a security. However, the basic elements of buying and selling in some form of a market have not changed mush, because trade means giving one thing in the exchange of another thing. Nowadays, many types of trading are available but we are discussing here Day trading.

Day trading means a person who buys or sells many financial or economical instruments like options, stocks, futures and currencies. The main goal of trading is to make a profit from the difference between the buying price and the selling price. This type of trading is different from other style of trading because it is held or when the market traded is closed. In the earlier days, this trading was available only for financial companies like banks because it had access to the exchanges and market data. But today, technology has changed like internet and individual traders have direct access to the same exchanges and market data and even they can make the same trades at very low cost.

Trading Options:

Apart from day trading a beginner can also go through some other trading options like short term trading like scalping where positions are only held for a few seconds or minutes. Longer term trading is like swing and position trading where a position may be held throughout the trading day. We have changed trading systems by adding a lot of flexibility and given it various options where a common man and millionaire can go through this process they can trade. This can be done from anywhere in few minutes to few hours and it is dependent on the process of trading which you chose for trading. It is up to the trader that he chooses a single style or goes for multiple styles. Apart from these points, trading style as well as the type of trading also matters. Some traders like to make many trades throughout the trading day but some traders wait for the best condition, so sometime they make only one trade per day. But the motive of all the traders is same and that is to make a profit.


In this century we have so many different financial instruments available, which can be day traded and these markets are offered by various exchanges in the world.  Day traders can have access to all of the exchanges and their markets via direct access brokers because they offer direct access to the exchange which provides faster trade execution at lower cost. Stock markets trade the actual stocks but they have contract specifications that provide the information that is needed to trade each stock.