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AAPL178.42-1.19%
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tf/beginners
234
tf/beginners•Posted by u/newbie_investor•

Complete beginner — what IS trading? I don't even know where to start

I know this is probably the most basic question possible, but I genuinely don't understand what "trading" means beyond "buy low, sell high."

Like, what are all the different types? I see people talking about stocks, options, futures, forex, crypto — are these all different kinds of trading or different markets? Do you need different accounts for each one?

I have about $2,000 saved up and I want to learn. Not trying to get rich quick, just want to understand this world. Where does a complete beginner even start?

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chart_wizard·edited

Welcome! Here's the simplified version:

Trading = buying and selling financial instruments to make a profit. The different types are mostly about WHAT you trade and HOW LONG you hold:

  • Stocks: You buy shares of a company (Apple, Tesla, etc.)
  • Options: Contracts that give you the RIGHT to buy/sell a stock at a specific price
  • Futures: Contracts to buy/sell something at a future date (oil, gold, indexes)
  • Forex: Trading currency pairs (Euro vs Dollar, etc.)
  • Crypto: Bitcoin, Ethereum, etc.

Yes, you generally need different accounts or at least different sections within a broker. Start with stocks — they're the most intuitive. Open an account at Fidelity or Schwab (no minimums), deposit your $2k, and buy shares of companies you actually understand.

198
options_queen·edited

I'd add: before buying ANYTHING, spend 2 weeks on Investopedia's free courses. Learn what a stock actually represents (ownership in a company), what a P/E ratio is, and how to read a basic chart. The foundation matters more than any specific trade.

112
trader_mike·edited

My #1 advice for someone with $2,000: DON'T start with options, futures, or forex. Those are leveraged instruments that can wipe you out fast. Start with stocks, learn how the market works, build good habits. You can explore the other markets after 6-12 months of experience.

167
swing_king·edited

Since you said you're not trying to get rich quick, you're already ahead of 90% of people who start trading. Seriously. The "get rich quick" crowd blows up in 3 months. The people who approach it as a long-term learning process are the ones who eventually succeed.

95