In this modern era, money is not only obtained from work, but also through trading activities. Unfortunately, there are still not many people who fully understand what trading is. In fact, many also consider trading as a form of fraud. Not so, trading is a legal transaction and the process is safe.

If you are curious about what trading is and are interested in trying it, first take a look at the definition, examples, and how trading works to achieve success and extra money.

What is Trading?

If you often see the term trading, you must have wondered about what trading is. Literally, trading can be interpreted into Indonesian as the activity of exchanging goods or services from one party to another. In the past, before there was the concept of money, people met their daily needs through a trading process called barter.

So, it can be concluded that this trading activity binds more than one party. After the emergence of a medium of exchange in the form of money, trading activities have been slightly modified. Now, we can make sales and purchases by exchanging the money we have. In concept, it is indeed a bit different, but actually it remains the same. The basic thing that makes it different is that now you are able to get profit or gain from this trading activity.

Due to the changes explained earlier, the concept of what trading is can now be interpreted as a buying and selling activity in a short period with the aim of getting the greatest possible profit. Are you familiar with this concept? Of course, you can find it in various aspects of life that include economic activities.

Now the term trading is closely related to investment. Why is that? Because investment and trading have the same goal, namely to make a profit. The activity of buying and selling investment products can fully summarize what trading is in the investment world. Actors who carry out this trading activity are usually referred to as traders, like investors who make investments.

Benefits of Trading

Although the concept of trading itself has been around for a long time, in reality, trading has only recently begun to be popular with many people. One of its attractions is the great opportunity to earn money in a short time. It is true, many people have succeeded in getting some money from short trading activities. Of course, this encourages more people to trade.

Even so, the key to successful trading lies in understanding the risks. It must be understood that trading does not always bring money, wrong actions can actually bring losses to you. However, apart from the risks that you must be aware of, there are actually so many advantages to trading.

Whatever type of trading is done, almost all of it can be done online. You don't need to leave the house, or even get out of bed to be able to gain success from trading activities. As long as you have a smartphone or laptop with an internet connection, you can trade whenever you want so easily. You can also monitor your trading activities so that the results are more satisfying, and help you see market developments.

Moreover, trading can be done with minimal capital. It does not require too much capital, you can adjust the amount of initial capital with your abilities and goals in trading. Then, you can also set trading activities to be automatic with additional features available from several broker options. Everything becomes very easy and fast.

No need to worry if you are still a beginner in terms of trading activities. Several types of trading have free demo accounts, where you can learn the ins and outs of how trading works directly without real money. It is perfect for you to do during your spare time or as a new activity to earn additional income. Most trading activities are also open every day for 24 hours, so it will not interfere with your work time.

Trading Activity Examples

As explained earlier, there are several types of trading activities that are now available and you can try. Of course, each has different characteristics and advantages. You must adjust your choice of trading activity to your needs, financial capabilities, and trading goals.

Some have high risks but big profit opportunities, while others have lower risks with smaller returns. Here are five examples of trading activities that you should know.

  • Stock Trading

Stock trading activities include buying and selling stocks and are short-term in nature, unlike stock investments that invest money in several shares and receive dividends from the company's profits in the long term. If in stock investments you passively receive profits from the company's profits, the same cannot be associated with stock trading.

You can only make a profit if you successfully sell the shares you have bought at a higher price. How does it work? It's quite easy, make sure to buy the shares when the price is falling. Then, wait for the right momentum to sell them again when the price creeps up. The margin from the purchase price to the selling price is the profit you have successfully earned.

  • Forex Trading

This example of trading activity is currently being widely discussed. Forex trading is the activity of buying and selling foreign currencies. The foreign currencies traded are not single currencies, but in pairs. It is indeed more complicated than stock trading, but you still have to hone your market analysis skills to be able to reap profits in both examples of trading activities.

First of all, you have to set a currency pair to buy, for example EUR/USD. Make sure the purchase price is low enough and in accordance with market conditions. From there, you can see the price development from the graph and make an assessment. This assessment will affect your decision, whether to sell or buy back.

  • Gold Trading

If you usually tend to know gold investment or gold savings, there is another thing known as gold trading. Different from the activity of buying and selling physical gold, you will sell or buy gold online. The concept is similar to forex trading, where the price of gold here depends on the stability of foreign currencies.

In this trading, gold is given the code XAU and will be paired with other foreign currencies. One of the most popular is XAU / USD, where profit will be obtained if you buy gold when the USD value falls and sell it when the USD value is rising.

  • Trading Binary Options

The basic concept of binary options trading is that there is a time period that determines when the money will be lost. You need to see market developments, conduct analysis, and estimate whether the price of a commodity or stock will rise or fall within a specified period of time.

Binary options trading itself is still relatively new in Indonesia, so it is often considered similar to gambling. In fact, this is not the case because you have to use market analysis to be able to estimate price fluctuations effectively. If you are sure the price will go up, do the call option. If you are sure the price will go down, immediately do the put option.

  • Bitcoin Trading

Bitcoin is touted as a new medium of exchange in the future. Currently, bitcoin trading activities are still being carried out, even with a very high price range. So, it is not surprising that many people are tempted by the profit opportunities from bitcoin trading.

The way it works is by buying bitcoin when the price is down and selling it again when the price goes up. Then, you can also do mining, which is the activity of verifying each bitcoin transaction which will be rewarded with a number of bitcoins. To be able to do this mining, a high-performance computer and adequate computer skills are required. This is because many other bitcoin traders are also eyeing the same mine.

Visit GIC Indonesia to get information about the world of trading. You can also join us in the Telegram Community GIC Trade and Telegram Channel GIC Trade. Don't forget to check the Youtube account GIC Indonesia which is full of lots of information, and follow our Instagram account to get information about various interesting webinars that you can follow.