Trading is the act of buying and selling financial assets to profit from price changes. Unlike investing, which focuses on long-term growth (e.g., holding Apple stock for years), trading seeks short-term gains (e.g., buying Bitcoin at $60,000 and selling at $62,000). For example, in forex, you might buy EUR/USD at 1.0500 and sell at 1.0550, earning 50 pips. Start by picking a market—forex for currency pairs, futures for contracts like oil, crypto for digital coins, or stocks for company shares—and practice spotting price moves on a chart.

Let's break down the markets:

• Forex: Trade currency pairs like USD/JPY. If the U.S. dollar strengthens, USD/JPY rises (e.g., from 150.00 to 151.00).
• Futures: Buy contracts for assets like gold. If gold jumps from $2,000 to $2,050, you profit based on contract size.
• Crypto: Trade coins like Ethereum. Buy at $3,000, sell at $3,200, and pocket the difference.
• Stocks: Buy shares like Tesla. If it rises from $200 to $210, you gain $10 per share.

Open a free demo account, watch how prices move daily, and note what drives them (e.g., news, supply).

Here's how to speak the trading language:

• Pips: Smallest price move in forex (e.g., EUR/USD from 1.0500 to 1.0501 = 1 pip).
• Lots: Trade size. A standard lot in forex is 100,000 units—1 pip = $10 profit/loss.
• Leverage: Borrowed funds (e.g., 1:100 means $1 controls $100).
• Margin: Money to hold a leveraged trade (e.g., $1,000 for a $100,000 position).
• Spreads: Broker's fee (e.g., buy at 1.0500, sell at 1.0498 = 2-pip spread).

Practice calculating: If you trade 0.1 lot of EUR/USD with a 2-pip spread, your cost is $2.

Step-by-step:

1. Choose a platform (e.g., MetaTrader 4—download it free).
2. Open a demo account with $10,000 virtual funds.
3. Log in, select a market (e.g., forex), and pick a pair like GBP/USD.
4. Place a trade: Click "New Order," set 0.01 lot, hit "Buy." Watch it move!

Try this now—buy GBP/USD, set a 10-pip stop-loss, and see how it feels to execute a trade.

Prices shift due to supply and demand. If more traders buy Bitcoin, demand rises, pushing it from $60,000 to $61,000 (uptrend). If selling spikes, it drops to $59,000 (downtrend). Sideways markets hover (e.g., $60,000-$60,200). Open a chart, draw a line connecting highs or lows, and identify the trend. For example, if EUR/USD climbs from 1.0400 to 1.0600 over days, it's an uptrend—buying makes sense here.

Master these:

• Market Order: Buy/sell instantly at current price (e.g., buy USD/JPY at 150.50).
• Limit Order: Buy/sell at a specific price (e.g., buy USD/JPY only at 150.00).
• Stop-Loss: Exit losing trades (e.g., sell USD/JPY if it drops to 150.20 from 150.50).
• Take-Profit: Lock in gains (e.g., sell at 151.00).

Practice: Set a limit order to buy EUR/USD at 1.0450 and a stop-loss at 1.0430. Watch it trigger.

Candlestick charts show price action:

• Green candle = price rose (e.g., open at $50, close at $52).
• Red candle = price fell (e.g., open at $52, close at $50).
• Wicks show highs/lows.

Open a 1-hour chart of Bitcoin. If it forms three green candles in a row, it's trending up. Draw a horizontal line at $50 (support) where price bounces—trade above it.

Start analyzing:

• Support: Price floor (e.g., EUR/USD holds at 1.0400).
• Resistance: Price ceiling (e.g., 1.0600).
• Trendlines: Connect rising lows (uptrend) or falling highs (downtrend).
• Patterns: Spot a "double top" (two peaks at 1.0600) signaling a drop.

On a chart, mark support at 1.0400, resistance at 1.0600, and buy if price breaks 1.0600 with volume.

Leverage multiplies your power: 1:100 means $100 controls $10,000. If EUR/USD rises 1% (100 pips), you earn $100 on a $100 account—but a 1% drop wipes you out. Margin is your stake (e.g., $100 for $10,000). Trade 0.1 lot of USD/JPY at 150.00 with 1:50 leverage. If it hits 150.50 (50 pips), you gain $50—calculate this on your demo now.

News moves markets:

• Interest Rates: Fed raises rates, USD strengthens (e.g., USD/JPY jumps).
• GDP: Strong U.S. GDP boosts stocks like Tesla.
• Crypto News: Bitcoin ETF approval spikes BTC prices.

Check a calendar (e.g., April 03, 2025), find the next Non-Farm Payrolls report, and buy USD pairs if it beats forecasts.

Brokers use your money (e.g., deposit $100, trade $10,000 with 1:100 leverage). Prop firms fund you after a challenge (e.g., pass a 10% profit target, trade $50,000). Brokers give freedom; prop firms reduce risk. Test both on a demo—trade $100 with a broker, then aim for a 5% gain in a prop firm simulator.

Create yours:

• Goal: Earn $500/month.
• Market: Forex (EUR/USD).
• Time: 1-hour charts, 2 hours daily.
• Rules: Risk 1% per trade, 1:2 risk-to-reward.

Write this down, trade it for a week on a demo, and adjust based on results.