Stock Trading - the facts

Stock trading is the process when a stock trader or stock investor buys and sells financial products such as stocks or bonds in the financial markets.

Stock trading is when you try to profit from the short-term price fluctutations. Some trades will last several seconds; some will last several weeks. Stock trading differs from stock investing in that stock investors purchase stocks with a view to holding onto them for a long period of time - measured in months or years.

There are many different forms of stock trading including dat trading, swing trading, market trading, trend following, scalping, momentum trading, countertrend trading, trading the news and arbitrage.

Stock traders normally need to use a stock broker, although with the rise of the internet, many people who stock trade can use the internet to manage their own financial portfoilios.

Stock trading is not risk free - in fact, stock trading can be quite high risk with huge levels of uncertainty and complexity. Inexperienced stock traders should not see it as an easy way to make money as it is possible to lose fortunes in bad misjudgements of the market.

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