A Quick Guide to the Basis of Stock Trading

First, "stock" refers to the share of the company's ownership. The company sold its shares to raise funds. Companies traded on the stock market are listed companies that issue shares to the public. Everyone who owns a stock has a certain number of shares, giving them the corresponding ownership. For example, they may have the right to vote on major company decisions and dividends (which are distributed to shareholders after paying the company's interest expenses and taxes). Having said that, there are different types of shares with different types of rights. The majority of shares listed on the stock market are made up of "common shares," giving you the right to vote and dividend

"Stock market" actually refers to all stock exchanges. When the company first issues shares to the public, the company chooses the stock exchange it wants to list. Most companies are listed on an exchange, although some very large companies are listed on more than one exchange. This means that you can trade the company's shares on each exchange. Some of the major exchanges are the New York Stock Exchange, the Tokyo Stock Exchange and the London Stock Exchange.

When you buy or sell stocks, you need to go through a stockbroker. They charge fees or commissions in exchange for promoting trade. Now you can buy or sell by filling out a number of online brokers on the form

Well, so you have some stock trading basics on the nature of the stock and on the other hand, The stock market … but how do you make money trading or investing in stocks? Well, in theory, the price per share is an indicator of company value. As the company's fortunes rise, prices should theoretically increase, and vice versa. If you buy a stock in a company and think it will be more successful in a given time frame, you should be able to sell your stock as the company's price increases and earns capital gains. Or you may want to stick with your stock and keep it

This is the theory, which almost sums up the number of investors who invest in the stock market. They look at a set of basic data, specifically financial data (such as sales, profits, debt levels, growth rates, and certain financial ratios) associated with a particular company and whether to invest accordingly. The analysis of these data is known as the "fundamental analysis"

trading stocks (rather than investing in stocks) – "traders" – short-term view of the stock market. In the short term, the stock market seems to be no reason, the company's share price does not seem to show value. The short-term volatility of stock prices is effectively governed by the collective psychology of the market rather than the firm's value.

Traders try to capitalize on short-term volatility in the stock market to gain advantage. They use "technical analysis" – to analyze trends and patterns in stock prices in order to find opportunities to take advantage of upside, downside and even sideways price movements.

On the one hand, investors who use basic analysis, on the other hand, Who use technical analysis, on the other hand, take a very different approach to stocks. But both can make money. Because of the "black box" nature of many of the securities trading systems used by traders, technical analysis is a little mysterious.

A trading system is a method used by traders to identify and exploit profit opportunities. Some people sell trading systems, and many (if not most) professional traders keep their trading systems. Other pro-traders often change their trading systems, they think a given system has lost its effectiveness.

So, you have some key stock trading basics. We barely caught the stock market investing and trading the surface of the world, but hopefully you can already see how you can make money in stocks