Trading is the process of buying and selling financial assets such as stocks, currencies, commodities, and indices. Trading is a major part of the global financial markets, where these assets are exchanged via trading platforms or exchanges such as the stock market or forex. Traders aim to make a profit by taking advantage of the price fluctuations of financial assets.

Types of trading:

1. Day Trading: Involves buying and selling assets on the same day, without holding any assets for another day. Day traders rely on short-term price movements, and take advantage of daily fluctuations.

2. Long-term trading: Traders hold assets for days, weeks or even months. This type is based on analyzing fundamentals such as the performance of the company or the general economy.

3. Forex Trading: Focuses on the exchange of foreign currencies. Traders buy one currency and sell another, hoping to profit from the difference between the exchange rates.

4. Commodity trading: such as oil, gold, or wheat. Traders here rely on expectations about the demand and supply of these commodities.

Analysis tools in trading:

Technical analysis: It relies on studying charts and price history to try to predict future movements. Traders use technical indicators such as moving averages, support and resistance lines.

Fundamental analysis: Focuses on the economic and financial aspects that affect asset prices. This includes following economic news, earnings reports, and central bank monetary policies.

Risks and rewards:

Trading can be profitable, but it involves significant risk. A trader can lose a significant portion of their capital if the market moves unexpectedly. For this reason, it is essential to manage risk wisely, and use strategies such as stop loss to protect capital.

Ultimately, trading requires a deep study and understanding of the markets, as well as discipline and patience to achieve success.