#ChristmasMarketAnalysis CONTINUED…
Trading is an activity of negotiating financial assets with the aim of profiting from price variations in the short, medium or long term. There are several ways to trade, depending on the style, strategy and market chosen. Here are the main modalities:
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f) Derivatives:
• Includes options, futures and contracts for difference (CFDs).
• Allows speculation and hedging.
3. Regarding the strategy used:
a) Technical Analysis:
• Based on charts, indicators and historical price patterns.
• Indicators such as RSI, moving averages and Fibonacci are widely used.
b) Fundamental Analysis:
• Focuses on the fundamentals of the asset, such as financial statements, economic data and geopolitics.
• Most common in position and swing trading.
c) Arbitrage:
• Exploits price differences between markets or platforms for the same asset.
• Requires high execution speed.
d) Automated Trading/Algorithms:
• Use of bots or software that execute orders automatically based on predefined criteria.
e) Leverage:
• Use of margins to increase exposure and potential profit (or loss).
f) Hedging:
• Protect positions against losses using opposite trades.
4. Platforms and Technologies:
• Social Trading: Copy strategies from experienced traders.
• Copy Trading: Automate copying of third-party trades.
• Mobile Trading: Applications for trading on the go.
Tips for Starting to Trade:
1. Define a clear objective (short or long term).
2. Choose a strategy and market according to your risk profile.
3. Use technical and fundamental analysis tools.
4. Test strategies on demo accounts before trading with real money.
5. Maintain emotional discipline and strict risk management.
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