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    Péter Illés
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    Trading involves buying and selling stocks within a single day, which is faster and riskier than long-term investing. Traders must set price targets to take profits and stop losses to limit potential losses before entering a trade. An effective trading strategy includes setting an entry price, price targets to sell portions of shares at profits like 5% or 10%, and a stop loss typically within 2-5% to limit losses if the trade moves against the position. Trading requires practice with paper trading before using real money due to its speed and risk.

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    Trading involves buying and selling stocks within a single day, which is faster and riskier than long-term investing. Traders must set price targets to take profits and stop losses to limit potential losses before entering a trade. An effective trading strategy includes setting an entry price, price targets to sell portions of shares at profits like 5% or 10%, and a stop loss typically within 2-5% to limit losses if the trade moves against the position. Trading requires practice with paper trading before using real money due to its speed and risk.

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    18 views1 page

    Trading Basics

    Uploaded by

    Péter Illés
    Trading involves buying and selling stocks within a single day, which is faster and riskier than long-term investing. Traders must set price targets to take profits and stop losses to limit potential losses before entering a trade. An effective trading strategy includes setting an entry price, price targets to sell portions of shares at profits like 5% or 10%, and a stop loss typically within 2-5% to limit losses if the trade moves against the position. Trading requires practice with paper trading before using real money due to its speed and risk.

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    📚TRADING BASICS📚

    Trading is the act of buying and selling a stock within the same
    day. A trade can last a couple minutes or an entire day. Trading
    is much faster and riskier than investing. Before entering a
    trade, you must always have preset targets for taking profits
    and
    stopping losses.

    A trade should have a similar layout to something like this.

    Entry - Price you entered the stock at

    Price Target - Sell some shares (not all) at your first price target. You can sell some shares at
    5% profit, then more at 10%, and so on.

    Stop Loss - This is needed to limit losses on a trade. Usually stop losses are set at 2-5% for
    trades. For example if you entered a trade with $1,000, your maximum loss would be $20
    but your profit is unlimited. This is a great strategy all traders should implement.

    Trading is more advanced, always start with paper trading or something slower like
    investing/swing trading to get the hang of it.

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