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Stock trading involves buying and selling shares of publicly traded companies on stock exchanges. It's one of the most popular ways to invest in the global economy, allowing you to own a piece of companies you believe in and potentially profit from their growth and success.
Unlike forex, stock markets operate during specific trading hours and are centralized exchanges where buyers and sellers meet to trade shares. Major exchanges include the NYSE, NASDAQ, London Stock Exchange, and many others around the world.
Stocks are categorized by:
Tip: Stock trading allows you to build a diversified portfolio across different sectors and market caps, reducing overall investment risk.
Stock trading involves market risk, where the value of your investments can go up or down based on company performance, market conditions, and economic factors. While stocks have historically provided good returns over the long term, they can be volatile in the short term.
Use stop-loss orders to help cap downside when markets move against you, and consider diversifying your portfolio across different sectors and market caps to spread risk.
Company earnings, economic data, market sentiment, sector trends, and global events all play a role in stock price movements.
Stock markets have specific trading hours, typically 9:30 AM to 4:00 PM ET for US markets, with pre-market and after-hours trading available.
Dividends are payments made by companies to shareholders, usually quarterly, representing a portion of the company's profits.
Consider company fundamentals, sector trends, market conditions, and your own investment goals and risk tolerance when selecting stocks.
Stock trading involves substantial risk and may result in the loss of your invested capital. Stock prices can be volatile and may decline significantly. Past performance does not guarantee future results. Make sure you understand the risks involved before trading.
Products and services described on this page may not be available in all jurisdictions. This material is for information only and is not investment advice.