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The Business of Trading

Many investors talk about getting into

trading as a business, but before you can do that, you really need

to have an idea what the business of trading is all about – the

instruments you can trade, the role that various participants in the

industry play, how to pick the right instruments and the right firms

for you, how to conduct your trading, etc.

In general, when you put your money

into something that gives you ownership and may be held for an

indefinite period of time, you are considered to be an “investor.”

Buying real estate or stocks are prime examples. When you use your

money to speculate on price movement of an instrument derived from a

physical or financial product, you usually are dealing with a time

factor and are considered a “trader” because you are likely to trade

in or out of positions over a shorter period of time. 

This tutorial will focus on the

trading aspects and give you the background you need to move on to