1️⃣ What is “Long” in trading?
Long = Buy first, sell later at higher price.
Example:
You buy a stock at 100 rupees
Price goes to 120 rupees
You sell → 20 rupees profit
But if price falls to 80 rupees and you sell → 20 rupees loss
So in long trading: 👉 You want price to go UP
2️⃣ What is “Short” (Short Sell)?
Short = Sell first, buy later at lower price.
You make money when price goes DOWN.
Example:
Stock price is 100
You “sell” at 100 (borrowed share)
Price falls to 70
You buy back at 70
Profit = 30
But if price goes to 130:
You must buy back at 130
Loss = 30
So in short trading: 👉 You want price to go DOWN
3️⃣ How does investment work?
Investment means:
You put money in stock, gold, property, crypto etc.
You wait for value to increase over time.
You earn profit from price increase or dividends.
It works because companies grow, economy grows, prices increase over time.
4️⃣ Why does loss happen?
Loss happens because:
Market goes opposite direction
Bad news about company
Economic crisis
Fear & panic selling
No proper knowledge
Emotional decisions
Using too much risk (leverage)
Trading is risky. It is not guaranteed profit.
5️⃣ Is it benefit or waste of money?
It depends.
If: ✔ You learn properly
✔ You manage risk
✔ You invest long term
✔ You don't use money you can't afford to lose
Then it can build wealth slowly.
But if: ❌ You trade without knowledge
❌ You follow tips blindly
❌ You try to get rich fast
❌ You use borrowed money
Then yes, money can be wasted.
Important Truth
Trading is like a business, not gambling.
It requires:
Knowledge
Patience
Risk management
Emotional control
Most beginners lose because they think it is easy money.
💢If you want, I can explain:
Difference between trading and investing
How beginners should start safely
Or how to avoid big losses