What Is Stock Trading? - Know The Basics

Understanding the basics of Stock Trading is not nearly as difficult as it may seem. You have no doubt heard of stock investing. Stock investing is much longer term in nature than trading is.

Typically stock traders enter and exit the same trade in a much shorter timeframe than do stock investors. Investors are usually in for the long haul as they look for the profits of a company to go up and thusly the price of the stock to go up.

Traders look to capitalize on smaller, shorter-term movements of a stock. Where the investors see the short-term market movements as "noise", the trader sees these movements as numerous opportunities to profit.

28 June 2008 | Business