What is Trading and its purpose?

The primary goal of trading is to earn profits by buying and selling various assets, such as currency pairs, stocks, commodities, and cryptocurrencies. Traders aim to capitalize on price fluctuations:

• When purchasing an asset, traders anticipate that its value will increase, allowing them to sell it at a higher price.

• Conversely, when selling an asset, they expect to buy it back later at a lower price. This often involves selling assets they do not currently own.

Understanding market trends and economic indicators can significantly enhance trading strategies. For instance, geopolitical events or economic reports can impact asset prices dramatically.