Introduction to Investment & Trading

1. Introduction to Investment & Trading.pptx.pdf

BEFORE YOU START:

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First of all what is the Difference between Investment and Trading?

Investing:

- Concept: Like planting seeds for the future, investing involves buying assets (e.g., stocks) with the expectation they'll grow over time.

- Example: Buying shares of a promising company for long-term growth.

- Theory: Patience is key; hold onto investments for long-term growth.

Here are a few investment tricks and if you don't understand it now it is fine 😊

Dollar-Cost Averaging: Invest a fixed amount regularly to reduce the impact of market fluctuations.

Diversification: Spread investments to lower risk; don't put all money in one place.

Dividend Reinvestment: Reinvest dividends to buy more shares and increase future earnings.

Trading
:

- Concept: Trading is like buying and selling quickly to profit from short-term price changes.

- Example: Buying a stock today and selling it tomorrow for a quick profit if its price goes up.

- Theory: Make quick trades within a day to capitalize on short-term price movements.

Here are a few trading tricks and if you don't understand it now it is fine 😊

Stop-Loss Orders: Automatically sell a stock if it drops to a certain price to limit potential losses.

Trailing stop-loss: Sometimes you do not know if you need to go out of a position or not. A trailing stop loss will trigger, NOT at a fixed price, but at a price that is 20% from the position.

So let us say, Gold is at 1950 and you set a trading stop loss at 20$ below price. If Gold goes up to 1970$ / ounce, then stop loss goes up to 1950$. Let's say Gold goes back down, it will auto sell at 1950.

Set Clear Goals and Limits: Decide profit goals and maximum loss before making a trade.

General Tips:

1. Stay Informed: Set up news alerts to stay updated on your investments.

2. Control Your Emotions: Stick to a predefined strategy to avoid emotional decisions.

3. Continuous Learning: Stay curious; keep learning about financial markets for a competitive edge

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