Stock Trading

Stock trading is the practice of buying and selling shares of publicly listed companies with the primary goal of profiting from short- to medium-term fluctuations in their market price. As a key discipline within investments, it differs from long-term buy-and-hold strategies by focusing on capitalizing on market volatility and momentum. Successful trading requires a sophisticated understanding of market analysis, leveraging principles from finance and accounting to assess a company's financial health, and an appreciation for business and management to evaluate the underlying factors that drive a stock's value.

  1. Introduction to Stock Trading
    1. Defining Stock Trading
      1. What is Stock Trading
        1. Purpose of Stock Trading
          1. Stock Trading vs Other Investment Activities
          2. Trading vs Investing
            1. Time Horizon Differences
              1. Risk and Return Profiles
                1. Decision-Making Approaches
                  1. Capital Requirements
                  2. Role of Stock Markets
                    1. Capital Formation
                      1. Price Discovery
                        1. Liquidity Provision
                          1. Facilitating Ownership Transfer
                            1. Economic Function
                            2. Key Terminology
                              1. Basic Securities Terms
                                1. Stock
                                  1. Share
                                    1. Equity
                                      1. Common Stock
                                        1. Preferred Stock
                                        2. Market Data Terms
                                          1. Ticker Symbol
                                            1. Bid Price
                                              1. Ask Price
                                                1. Spread
                                                  1. Last Price
                                                  2. Trading Metrics
                                                    1. Volume
                                                      1. Volatility
                                                        1. Liquidity
                                                          1. Market Capitalization
                                                            1. Float
                                                            2. Corporate Actions
                                                              1. Dividend
                                                                1. Stock Split
                                                                  1. Stock Dividend
                                                                    1. Rights Offering
                                                                    2. Stock Classifications
                                                                      1. Blue Chip Stocks
                                                                        1. Growth Stocks
                                                                          1. Value Stocks
                                                                            1. Penny Stocks
                                                                              1. Small Cap Stocks
                                                                                1. Mid Cap Stocks
                                                                                  1. Large Cap Stocks
                                                                                  2. Market Indices
                                                                                    1. Index
                                                                                      1. Benchmark
                                                                                        1. Sector Indices