As its name suggests, stock trading involves buying and selling stocks to earn a return on investment on daily price fluctuations. It’s an ideal choice for short-term traders who want to bet for a short time. This blog post is going to talk about stock trading in detail so you don’t have any misconceptions left.
What is Stock Trading?
As already mentioned above, stock trading involves buying and selling stocks in order to time the market. The main objective of stock traders is to get the most out of market events to sell acquired stocks for a profit, or buy stocks at low rates. There are two different types of stock trading:
Active Trading
Active traders are the ones who perform 10 or more trades each month. Usually, they make use of a strategy relying largely on timing the market in order to take benefit from the short-term events to earn profits in the upcoming weeks and months.
Day Trading
Day trading is the practice of buying and selling stocks within the same day. It can be performed multiple times throughout the day. Day trading, if executed correctly, can bring you handsome profits in little to no time. It is a strategy used by traders who like to play hot potato with the stocks. The objective of a day trader is to make some money in the next few moments or days based on the daily price fluctuations.
To participate in stock trading, you don’t need to go anywhere except brush up on your stock trading knowledge. You can do so from the comfort of your home. You should have a clear picture of what you’re going to do.