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Investment Dictionary

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Trading Stocks


Trading stocks is a process when stocks are bought and sold on the stock market. How differs trading stocks and investing in stocks? Well, it is the same, just is common to think that investing is a long term process while trading stocks is associated with intense trading process when securities aren’t held for a long period.


Traders who trade stocks believe that they can beat market and catch some waives. They try to create their own strategy and to catch some tendencies on the market (for example, some believe that on Friday stocks are tend to decrease more than on Monday, it is similar to believe that stock market is increasing more in spring than in autumn). Those are only few simple examples that traders are trying to use, but most of them want to create more complicated trading in stocks strategy which could earn dreamed profits.


It is hard to define how many of such active stock traders are successful in reality over long-term period. Even if some trading stocks strategies may look justifiable over short time, it may carry a lot of risk, which one take will wipe off all the profits of the past. 


Of course, if you are a stock trader that uses a trading platform, it doesn’t mean that you are day trader, which is even riskier. 



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