What is Share Trading?
Share trading involves the purchase of shares with the intention of selling them at a later time to potentially profit from price fluctuations.
Share trading takes place on stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ, where buyers and sellers meet to transact.
Stock markets offer liquidity, allowing traders to quickly buy or sell shares due to the high volume of trading activity.
Many share traders engage in short-term trading, seeking to capitalize on daily, weekly, or monthly price movements rather than long-term investments.
Some traders engage in speculative trading, making bets on price movements without a long-term investment horizon.
Day traders buy and sell shares within the same trading day, aiming to profit from intraday price fluctuations.
Traders often use technical analysis (charts and patterns) and fundamental analysis (company financials and news) to make trading decisions.
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Effective risk management strategies, such as setting stop-loss orders, are crucial to limit potential losses in share trading.