What Exactly Is Stock Trading?
Many of us are used to being invested in stock through a mutual fund in our retirement plan. We may switch from one fund from the other from time to time but for the most past we consider ourselves to be in for the long haul. So basically an investor seeks to be in a stock or a group of stocks for the long haul. Investors don’t expect a stock to skyrocket in value overnight but do expect that the value of the company’s stock they have chosen will appreciate over time. In stock trading you don’t necessarily expect to be in a stock for the long run, but you are looking to profit form typically smaller short-term moves in a stock. In stock trading you are more like to use market timing meaning that you are seeking the best time to get into a stock and after that you are looking for the best time to get out. Stock trading often involves the use of technical analysis to determine the best times and prices for entries and exits. As this is a more short-term approach to profiting in the stock
