What is trading and why do we need it?

December 9, 2021

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What is trading and why do we need it?

Traders use different strategies to predict the future market value of an asset and make money from it.

One possible strategy is to follow the news. Usually, novice traders use this strategy.

More experienced traders take into account a number of factors, use indicators and know how to predict trends.

However, even professionals trade with losing trades. Fear, hesitation, lack of patience or the desire to make more money can cause losses for experienced traders. Simple risk management rules can help maintain sanity.

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Risk Warning : Trading CFDS on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.