Stock Market Trading
Trade shares of the world's leading companies
$100T+
Global Market Cap
9:30-4:00
NYSE Hours (ET)
60,000+
Listed Companies
10-12%
Avg Annual Return
What is Stock Trading?
Stock trading involves buying and selling shares of publicly traded companies. When you buy a stock, you own a piece of that company and have a claim on its assets and earnings. Traders profit from price movements, while investors focus on long-term growth and dividends.
How It Works
- • Companies issue shares to raise capital
- • Shares trade on stock exchanges
- • Prices fluctuate based on supply and demand
- • Buy low, sell high to profit
- • Earn dividends from profitable companies
Key Benefits
- • Ownership in real companies
- • Highly regulated and transparent
- • Multiple ways to profit
- • Extensive research available
- • Tax advantages for long-term holding
Major Stock Exchanges
NYSE
New York Stock Exchange
Companies:2,400+
Market Cap:$25T+
NASDAQ
NASDAQ Stock Market
Companies:3,700+
Market Cap:$20T+
LSE
London Stock Exchange
Companies:2,000+
Market Cap:$4T+
TSE
Tokyo Stock Exchange
Companies:3,700+
Market Cap:$6T+
Types of Stocks
Blue Chip Stocks
Large, established companies with stable earnings
Apple (AAPL)Microsoft (MSFT)Johnson & Johnson (JNJ)
Risk: Low
Return: Moderate
Growth Stocks
Companies expected to grow faster than market average
Tesla (TSLA)NVIDIA (NVDA)Shopify (SHOP)
Risk: High
Return: High
Dividend Stocks
Companies that regularly pay dividends to shareholders
Coca-Cola (KO)AT&T (T)Procter & Gamble (PG)
Risk: Low
Return: Moderate
Penny Stocks
Low-priced stocks trading under $5 per share
Small cap biotechsMining companiesStartups
Risk: Very High
Return: Variable
Stock Trading Strategies
Day Trading
Buy and sell within same trading day
Timeframe:Minutes to hours
Min Capital:$25,000+ (PDT rule)
Swing Trading
Capture short to medium-term moves
Timeframe:Days to weeks
Min Capital:$2,000+
Position Trading
Hold positions for larger trends
Timeframe:Weeks to months
Min Capital:$5,000+
Buy and Hold
Long-term investment approach
Timeframe:Years
Min Capital:Any amount
Stock Market Hours
Regular Trading Hours
Pre-Market:4:00 AM - 9:30 AM ET
Regular Hours:9:30 AM - 4:00 PM ET
After-Hours:4:00 PM - 8:00 PM ET
Best Trading Times
- • 9:30-10:30 AM: High volatility, best for day trading
- • 11:30-2:00 PM: Lunch lull, lower volume
- • 3:00-4:00 PM: End of day moves, closing positions
How to Start Stock Trading
Important Stock Trading Concepts
Fundamental Analysis
- • P/E Ratio: Price to earnings valuation
- • EPS: Earnings per share
- • Market Cap: Total company value
- • Dividend Yield: Annual dividend return
- • Revenue Growth: Year-over-year growth
Technical Analysis
- • Support/Resistance: Key price levels
- • Moving Averages: Trend indicators
- • Volume: Trading activity measure
- • RSI: Overbought/oversold indicator
- • Chart Patterns: Price formations
Risks & Risk Management
Common Risks
- • Market volatility and crashes
- • Company-specific risks
- • Emotional trading decisions
- • Overleverage with margin
- • Lack of diversification
Risk Management
- • Use stop-loss orders
- • Diversify your portfolio
- • Never risk more than 2% per trade
- • Avoid emotional decisions
- • Start with paper trading