If you are just starting out in trading stock you are probably looking for some basic information such as stock trading for dummies or something similar. That is definitely smart of you to do so because you are smart enough to realize that you need more knowledge as well as skill before you venture into the uncharted waters of stock trading.
Keeping with the “stock trading for dummies” theme It makes sense for us to define “stock trading”. You are probably already familiar with “stock investing” as a means of profiting through the long-term appreciation of a companies stock. The length of time one invests in a stock can be as short as something like 6 months or 5, 10, or 20 years or more.
Stock trading is not as long term as stock investing. Stock traders look to take advantage of the numerous smaller moves that can be found within larger, momentum moves. A stock trade can last from a few seconds to many months. Those who trade stock using very small time frames such as seconds or a few minutes are referred to as “scalpers”. Day traders are those traders who open and close a position within the trading day. As an additional note the types of analysis used for stock research can vary greatly depending on the time frame of the trade. For instance, a long-term stock trader may analyze a stock more like an investor and utilize fundamental analysis to determine the health of the company, it's position in the marketplace, and its possibility for future price increase. Shorter-term trades, on the other hand are more likely to use stock technical analysis to research stock. This is logical as the fundamentals of a stock are unlikely to change much over the short term…of course, unless there is some big news that is released.
So now that we have a basic definition of stock trading to serve as a foundation for our stock trading for dummies discussion. This would be an excellent time for you to head over to our discussion of online stock trading for beginners.
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