What is stock market trading?
With a market capitalization into the tens of trillions of dollars, the American stock market attracts millions of investors from across the globe. There are some important features to stock market trading.Major Stock MarketsThe major U.S. stock exchanges are the New York Stock Exchange and the Nasdaq. The major stock market indexes are the Dow Jones Industrial Average, S&P 500, the Nasdaq Composite and Nasdaq 100. Most of the stocks used by traders are listed in these indexes.Trading vs. InvestingStock traders have a much shorter time horizon than investors. Typically, traders hold positions for no more than a few weeks at a time.Momentum StrategiesQuite a few stock market traders use momentum strategies. The basic premise is to jump on the bandwagon of price action. Buy if a price has moved sharply upward and sell if it has moved sharply downward.Counter-Trend StrategiesCounter-trend strategies are sometimes, though not always, diametrically opposite to momentum strategies. The count
