What are Stock?
**Shares** (also **stock** or **equity**) are **investment in a company**. When you buy a stock, you become a part-owner of the company and are entitled to a share of its profits (typically in the form of **dividends**) and to its future performance.
Example:
– When you purchase 10 shares of **Apple (AAPL)**, you own a fraction of Apple Inc.
– If the price of the stock increases or the company pays dividends, you earn.
Stock trading is the act of **purchasing and selling them on a stock market** (e.g., **NYSE**, **NASDAQ**, or **London Stock Exchange**) with the anticipation of generating a profit.
1. **Buy and Hold (Long-Term Investing)**
– Invest in stocks and keep them for generations.
– Goal: Capital appreciation, dividend yield, or both.
– Usually done through **brokerages** or **apps** like Fidelity, Robinhood, or E*TRADE.
2. **Swing Trading**
– Keep stocks for a few days to weeks.
– Employ technical and fundamental analysis to find short-term trends.
3. **Day Trading**
– Buy and sell the same security on the same day.
– High risk, fast-paced, requires advanced tools and experience.
4. **Trading Options**
– Wager on the movement of a stock’s price through contracts.
– Significantly more complicated, risk of losing all investment.
5. **Fractional Shares**
– Buy half a share instead of a full one.
– Perfect for novice investors purchasing costly stocks (such as Tesla or Amazon).
How to Start Day Trading Stocks?
1. **Open a brokerage account** (e.g., Charles Schwab, Robinhood, TD Ameritrade).
2. **Fund your account** with fiat currency.
3. **Research** firms (financials, earnings, industry).
4. Leverage resources like **charts**, **financial news**, and **technical indicators**.
5. Place a **buy order** (market or limit).
6. Track and control your portfolio.
Why Trade Stocks?
– **Building wealth** in the future.
– **Dividends** provide earnings.
– Swap short-term for **quick gains** (though with greater risk).
– Exposure to **equity in top companies** (Apple, Google, Amazon, etc.).