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Stock Trading Basics Explained

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70 views2 pages

Stock Trading Basics Explained

Uploaded by

devilgamerofficail1509
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

What is a Stock?

● A stock represents partial ownership in a company (Apple, Mcdonalds, Nike, etc)


● When you buy a share, you own a small piece of that company

Stock Market Basics


Stock Exchange
● Where stocks are traded (e.g. NYSE, NASDAQ)

Broker
A platform (Robinhood, Fidelity or eToro) that allows you to trade stocks

Types of Trading
Day Trading
● Buying and selling the same stocks within the same day

Swing Trading
● Holding stocks for a few days or weeks to capture short-term trends

Long-Term Investing
● Holding stocks for years to benefit from long-term growth

Common Terms
Ticker Symbol
● A unique identifier for a stock (AAPL for Apple)

Bid/Ask Price
● The price buyers are willing to pay (bid) vs the price sellers want (ask)

Market Order
● Buy or sell immediately at the current price

Limit Order
● Buy or sell only at a specific price or better

Volume
● The number of shares traded during a specific period
Key Concepts
Diversification
● Spread your investments across different sectors to reduce risk

Risk Tolerance
● Know how much risk you’re

Research

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