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Trading is the active buying and selling of financial instruments—such as stocks, currencies, commodities, and derivatives—to generate short-term profits from price fluctuations. Unlike long-term investing, traders capitalize on both rising (bullish) and falling (bearish) markets using technical analysis, market research, and risk management strategies.
Key aspects of trading include:
Financial Instruments: Traders deal in various markets, including stock markets (shares), foreign exchange (Forex), commodities (gold, oil), and cryptocurrencies.
Goal: The primary objective is to buy at a lower price and sell at a higher price, or vice versa (short selling) to make a profit.
Timeframe: Trading is typically fast-paced, with positions held for minutes, hours, days, or weeks, as opposed to years.

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