What is trading: how to make money on financial markets

Key Types of Trading

Trading can be divided into several categories depending on the holding period of positions and the strategies used. The most common types of trading strategies include:

1. Day trading
This involves intraday trading, where positions are opened and closed within a single day. Traders using this style rely on technical analysis and aim to profit from short-term price fluctuations. It requires high discipline and decisiveness but can also be profitable with experience and a solid strategy.

2. Swing trading
This involves trading based on price fluctuations over several days or months. Traders attempt to catch trend changes to buy low and sell at the peak. This is a more flexible approach, suitable for those who cannot constantly monitor the market.

3. Scalping
This involves trades that last only a few seconds or minutes. Traders buy and sell assets with minimal price fluctuations, earning small profits from numerous transactions.

4. Position trading
This involves holding positions for weeks or months. Traders focus on long-term market changes, which requires a good understanding of the market and patience.

5. Algorithmic trading
Algorithmic trading uses computer programs to execute trades according to predefined algorithms. This eliminates human error and allows for high-speed transactions.

6. Buy and hold strategy
This is a long-term strategy where assets are purchased and held over an extended period. It is most commonly applied in the stock market and focuses on steady value growth.

Traders can work with a variety of assets: stocks — shares of companies that can generate profit through price changes and dividends; bonds — debt instruments providing stable income; forex — currency trading where profits can be made based on exchange rate fluctuations; cryptocurrencies — highly volatile digital assets such as Bitcoin; and commodities and metals, such as oil and gold.

How to Start:

1. Education — study the basic principles of trading and types of analysis.
   
2. Choosing a broker — open an account with a reliable broker that provides access to markets.
   
3. Practice — start with a demo account to learn without risk.
   
4. Strategy development — determine your trading style and stick to it.

Useful Links

Course "Financial Markets" by Yale University
The online course Financial Markets by Nobel laureate and Yale University professor Robert Shiller is available on the Coursera platform. The course will help you understand how financial markets work, what risk management entails, and why behavioral aspects are so important in decision-making. It consists of seven modules and takes approximately 33 hours to complete.

Course Financial Instruments Trading Investing by Interactive Brokers
This course helps you understand how global capital markets work and learn to trade real instruments. The program is suitable for beginners and includes four courses, each covering important aspects of modern trading. During the training, you can test your skills on the Trader Workstation demo account and gain real experience in a simulated trading environment.

Lesson How to START Day Trading For Beginners by Craig Percoco
A YouTube lesson by Craig Percoco, who shares his experience, including trader psychology, using chart analysis software, trading mathematics, access to capital, and the importance of keeping a trading journal.

Article Investing vs. Trading: What's the Difference? by Investopedia
The article explains the differences between investing and trading, examining their approaches to generating profit in financial markets. The article details different styles of investing and trading, as well as their key differences, such as time horizon, risks, and required knowledge.

TradingView and eToro: 7 Best Platforms for Trading
The article presents an overview of trading platforms in 2025, comparing them by functionality and ease of use.