[Last Updated: March 16, 2025]
Do you want to know about What is trading? but also the how to start;
In this step-by-step guide you will learn everything you need to understand to the fullest. What is trading? and what subcategories are there?
But of course, if all this you call Trading is a scam.
Now if you're in a hurry and want to start trading can you open one account at FP Markets if you want to trade Forex, and if you want to trade cryptocurrencies.
You can open an account at the exchange. bybit η OK
Let's start with the basics.
Table of Contents
What is Trading?
Trading is the process buying and selling financial assets, such as shares, cryptobodies, forex and commodities, with the aim of short-term profit.
However, many people confuse a trader with an investor.
An investor wants to make as much money as possible, but long term.
This long-term horizon could also be over 5 years of waiting until he gets the result he wants, gradually buying the stock or cryptocurrency he has chosen.
Now a trader also wants to make as much money as he can but short term.
The short term could be from 10 minutes to a day with rare phenomena a week.
The trader is not interested in learning many things about a stock or cryptocurrency.
What interests him is the chart, and whether on the day he wants to trade whether there is important news or not.
An investor, however, should update daily for the development of the project and adapt to the market with systematic purchases with the DCA method.
But What is Trading? and how can I find out more information?
Before we get into our topic, let's go over them. separate what we said on a sign.
Differences Between Trading and Investing
| Investor | Trader | |
| Strategy: | Buy with DCA | Buy and sell directly |
| Seats: | Add to Cart | Buying and Selling |
| Leverage: | ❌ | ✅ |
| Resolution: | Fundamental analysis | News & Technical Analysis |
| Target: | Long-term | Short-term |
| Risk: | Medium | Quite a big risk |
What you should keep in mind is that neither being an investor is easy, nor is being a Trader.
- Ο investor has focused on a stock or a cryptocurrency and every month buys back new shares and grows the long-term portfolio of.
- While the trader you adapt to the market and depending on the trend prevailing at that moment it will invest in fall or rise of an asset.
What is trading in a nutshell?
Trading, in short, is the way to make money in the short term and be able to trade during your day either long or short, without you being interested in this asset and all you care about is the technical analysis and strategy you are doing.
What is Technical Analysis?
Many people have confused technical analysis with trading.
Η technical analysis (Technical Analysis) is a method based on the study of historical prices, trading volumes and charts.
The traders combined use technical analysis to predict future price movements or to adapt on the market, identifying trends and patterns.
Basic Principles of Technical Analysis
- The basic principles of technical analysis are that the history repeats itself and price patterns that have appeared in the past, there is a high chance that they will appear again.
- The market never goes in one direction, there is always the uptrend, downtrend and sideways trend.
In technical analysis, you will also be helped by some excellent tools called basic technical analysis tools.
Basic technical analysis tools
- RSI: Used to measure the market dynamics and locate overbought ή oversold conditions on an asset.
- CPR: The Central Pivot Range (CPR) is an important indicator support and resistance used in day trading and swing trading.
- O.B.V.: The OBV (On Balance Volume) is an indicator that measures the flow of trading volume to show whether the market is moving up or down.
- ADR: The ADR (Average Daily Range) shows it average price movement range of an asset
Now let me show you the positives but of course also negatives of Trading.
Positives of Trading
The Positives of Trading It's enough, but there's a big but to it.
Trading can help you yields significant profits especially if the strategy the Trader follows is successful.
Another thing that is extremely positive is that you can work at specific times of the day and from wherever you want, as long as you have an internet connection.
Unlike traditional investments, in trading you can win regardless of the direction of the market. You can earn money from trading and in a market (Long) but also for sale (Shorts).
Many platforms Online trading Offer leverage, allowing you to trade with more chapters from what you have. This increases a trader's potential for high profit returns, but also risks that we will see below.
Okay, with the positives, let's show you the negatives. Negatives of Trading
Negatives of Trading
The signals can offer great opportunities, but it is also accompanied by significant risks.
Before you get involved in Trading, it is important to know the negatives of trading so you can protect your capital.
To learn trading you will have to train for over 1 year on several strategies and demo accounts, so it is a quite long training until you feel confident and put money in your trading account.
High Risk of Losing Money:
In 90% of trading loses money Why, without training or risk aversion, a new trader wants to make thousands of euros from the market with the aim of losing all his money in just a few trades.
Trading can also be done psychologically exhausting, as required quick decisions and managing emotions (anxiety, fear, greed).
Many traders fall into traps such as:
- Panic Selling: That is, they sell out of panic when the market falls and do not trust their strategy.
- FOMO (Fear of Missing Out): That is, a trader opens a transaction out of fear of missing an opportunity and of course without having followed his trading plan.
- overtrading: Many people trade all day, resulting in the money they have earned being returned to the market.
- Leverage: H leverage It allows traders to trade with more money than they have available, however the high risk and high leverage can lead to the loss of the entire trading account.
Then let's go and show you her accuse the trader but also if you see what suits you best.
The 3 categories of Traders
Every person is different, so in trading there are 3 categories of traders with different strategies.
In summary, these are 3 trader categories
- swing trader
- Intraday Trader
- Scalper Trader
Swing Trader – Open positions for months
A swing trader It is not much different from a traditional and long-term investor, however the difference here is that a Swing Trader can trade both long and short and have these trades open for over 2 weeks or even a month.
However, he is not interested in the project or the stock, all he will do is technical analysis and fundamental analysis, and if he finds an opportunity, he will take a trade.
Swing Traders are looking for biggest market moves, instead of small daily profits.
Every time the trend in an asset they are watching changes, these traders will open a trade, either short or long.
Intraday Trader – Open positions for one day
An Intraday Trader or otherwise day trader It is one of the most popular categories since a large percentage of traders choose Intraday Trading.
Ο Intraday Trader He searches daily for opportunities that exist in the market and what he is looking for is setups and trend changes to lows. time frame such as 1h or 4h.
He is also not interested in every project and what he looks at is the hot news combined with the technical analysis he will do.
Scalper – Open positions for a few minutes
The Scalper trader is a category that many people consider a stressful trading category.
Usually one scalping trader He focuses on very low time frames such as 1m or 5m, without being interested in the project or having done fundamental analysis, and all he uses is technical analysis and high leverage.
something that can make quick profits in a few minutes but if you don't know what you're doing you can lose a lot of money instantly.
Now let me show you how to get started and learn trading.
How to Learn Trading
To learn trading There are thousands of videos on YouTube, but there are also many videos or articles that will confuse you.
If you're more into videos, on our YouTube channel I've created a playlist in Greek that will show you some basic things about trading.
But let's go deeper.
As we said above, you can earn money in two ways, either by long (Buy) or short (Sell).
- Long: It means when a short trend has given confirmation that this trend will change and you will be looking to find an entry to buy (Long).
- Shorts: It means when the trend is long and the chart starts to show us that it wants to change trend to short, so you will look to find an entry for short(Sale).
What is Long trading?
When you do long trading This means that the trend is quite bullish and all you need to look for is to buy the asset.
Here is an example for long trading.
Long Trading Example
- Suppose a stock is trading at 50€.
- The investor buys 10 shares (10 × €50 = €500).
- If the share price rises to 70€, the investor sells (10 × €70 = €700).
- Profit: €700 – €500 = €200.
Let me show you now. What is Short Trading?.
What is Short Trading?
Short trading is when the trend from long has turned to short and what you should be looking for is an entry for short.
The Short Trading, known as Short Selling, is a trading strategy where traders try to profit from the fall in the price of an asset, such as stocks, forex, or cryptocurrencies.
However, many novice traders are confused by short trading, but let me explain it even further.
Short Trading Example:
Suppose a stock is trading at 100€.
The trader borrows 10 shares and sells them immediately (10 × €100 = €1.000).
If the share price falls to 80€, the trader will close his position with a profit (10 × €80 = €800).
Profit: €1.000 – €800 = €200
What is Leverage?
Leverage is a great tool that helps traders have more money than they have.
That is, you borrow capital from the broker you have, for example, FP Markets which gives you the opportunity to increase your position in the trade.
How Does Leverage Work?
Leverage is expressed as a ratio, such as 1:10, 1:50, 1:100 the and me x10, x20 etc.
Leverage Example 1:10
- If you have 100€ and you use leverage 1:10, you can trade as if you had 1.000€.
- If the market moves in your favor against 5%, you will win €50 instead of €5.
- But if the market moves against you by 5%, you will lose €50 instead of €5.
What are the Orders in Trading
After many messages that I have received, let me show you what the basic orders in trading are like.
- Market order
- Limit Order
- Stop loss order
What is a Market Order?
The Market Order is one of the most basic types of commands in signals, where the buying and selling of an asset takes place directly at the best price the trader wants to buy manually.
- Buy Market Order: You buy at the lowest price you want.
- Sell Market Order: You sell at the highest price you want.
What is a Limit Order?
A limit order is an order to buy or sell an asset with a specified and automatic price limit.
In buy limit, the purchase is only made if the price touches the price you would like to buy automatically.
While in a sell limit, the sale only occurs if the price also touches the level at which you would like the sell to occur automatically.
Here is an example Buy Limit and sell Limit.
What is Stop Loss?
The Stop Loss It is a protection tool that traders use to limit their losses on a trade.
This is an order that specifies a predetermined price at which a position will be automatically closed to avoid larger losses.
Stop Loss Example
Let's assume a trader buys a stock at $100 and expects the price to rise. To protect himself from sudden drops, he places a stop loss at $95.
- If the price rises to $110, the trader makes a profit.
- But if the price falls to $95, the stop loss order is triggered and the position is automatically closed, preventing further losses.
In this example the trader wants to do short entry and the market is starting to go the opposite has added the stop loss and once the market touches the order, the trade will automatically close.
Where can you trade?
To trade you can at Forex marketIn cryptocurrency market, but also in stock market.
Let me show you the Forex market.
Forex Trading
The Forex Trading is the trading of currencies on a global stock exchange.
The foreign exchange market (Forex or FX) is the largest and most liquid financial market in the world, with a daily trading volume exceeding $ 7 trillion.
How Does Forex Trading Work?
The Forex Trading It is based on the buying and selling of currency pairs, that is, the trading of the value of one currency in relation to another.
📌 Example – Buying EUR/USD
- A trader believes that the Euro (EUR) will increase in relation to dollar (USD).
- Buys the pair EUR / USD at 1.1000.
- If the price rises to 1.1200, the trader can sell and earn the difference.
Popular Currency Pairs in Forex
These are the most tradable pairs (Major Peers), with high liquidity and small spreads. They always include the US dollar (USD).
| EUR / USD | Euro / US Dollar |
| GBP / USD | British Pound / US Dollar |
| USD / JPY | US Dollar / Japanese Yen |
| USD / CHF | US Dollar / Swiss Franc |
Let me show you a broker for forex trading.
Platforms for Online Forex trading
To do Forex trading you should register with a Online Broker.
He was always one of the best. online Forex broker is FP Markets.
If you don't know how to register with the Broker, I have created a detailed guide for it. How to Open an Account at FP Markets.
A few words about FP Markets.
Η FP Markets is a global Forex-broker, known for its low commissions and competitive spreads.
Founded in 2005 and is regulated by strict financial institutions, such as the ASIC and CySEC .
Crypto Trading (Cryptocurrency Trading)
Τι είναι το cryptocurrency trading? It is the buying and selling of cryptocurrencies, such as Bitcoin, the Ethereum, Solana and many others, for the purpose of profit.
Traders take advantage of price volatility by trading in short-term time period.
Types of Crypto Trading:
- Trading Spots – Buy and sell cryptocurrencies at the current market price.
- Futures trading – Leveraged trading, borrowing funds for greater profits (or losses).
- Holding Trading – Long-term investment in cryptocurrencies, based on the increase in their value.
Famous Cryptocurrencies
Below I will show you some of the most well-known cryptocurrencies with basic information about each:
Top 5 Cryptocurrencies by Capitalization.
| Bitcoin | Digital money, a store of value |
| Ethereum | Smart contracts, dApps |
| Tether | Stablecoin |
| Solana | Fast dApps & DeFi |
Platforms for Crypto Trading
If you want to trade cryptocurrencies, there are many platforms you can use.
Below are some of the most well-known:
| bybit | Specialization in futures trading & leverage |
| OK | Beginner-friendly, adjustable platform |
| Binance | Low fees, high liquidity, |
Trading in Shares
The trading in shares is the buying and selling of shares on the stock exchange for profit.
Unlike long-term investors, traders take advantage of short-term fluctuations in stock prices to make a profit.
Trading Platform in Shares
To trade in stocks or freedom24 is one of the best stock trading platforms owned by Freedom Finance Europe Ltd, a subsidiary of Freedom Holding Corp.
Provides access to global stock markets, allowing investors to buy and sell stocks, ETFs, bonds and other financial products.
If you want to do register with Freedom24 you can from here.
Famous Stocks
These shares belong to leading companies worldwide and is one of the most popular among investors and traders.
In the table below I will have for you 4 largest and most famous stocks that exist on the stock exchange and you can trade them.
| Apple | Technology |
| Microsoft | Technology |
| Amazon | E-commerce |
| Tesla | Electric Vehicles |
Is Trading a Scam?
Trading it is not a scam on it's own.
It is a legal activity that involves the buying and selling of financial instruments, such as stocks, Forex and cryptocurrencies.
However, there are also scams you should be aware of:
- Unreliable platforms – There are scammers who create fake platforms and promise huge profits.
- Ponzi Schemes & Signal Groups – Some Groups They promise high returns if you deposit money or follow specific signals.
- Fake Traders – Sly influencers or “gurus” sell fake systems that guarantee easy profits.
Can you make money from Trading?
Yes, you can make money from Trading, but it's not that simple.
To be a profitable trader you must have knowledge, experience, strategy and proper risk management.
However, you should also have a Good Strategy because successful traders use specific strategies.
Why do people lose money in Trading?
The world loses money in trading because they simply lack knowledge and want to make millions in a month.
Also bad decisions due to emotions and greed lead to huge mistakes.
I hope you found this guide helpful and that it answered all your questions.
See you in a next article.
What we mention on the website Bitsounisproject is for educational and entertainment purposes, does not constitute investment advice.
Always do your research and you calculate your risk.
