What is stock trading?

Stock trading refers to buying and selling of company shares for profits or gains. People buy stocks and look for selling the same at a better price in one hour, in two days or even in a month. This contrasts with buying shares and holding it for decades and selling it for a large lumpsum amount.

Day trading is one of the common forms of stock trading. The investors are basically not interested in being tong term shareholders of the company. Instead, they buy the shares in the morning when the market opens and sell it buy the time the day ends at whatever time the stock is bound to reach maximum price.

Investors rich in trading experience can make a good profit here if they can predict the market movement well in advance. However, beginners who want to learn and experience trading will have to be careful here and invest as much as they can afford to lose only.

Investors use Market Order and Limit Order technologies here. As per Market Order, the investors can facilitate buy or sell at the best available price as soon as possible. In Limit Order, you will set the price to buy or sell when you want the order to get executed.

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