Stocks
1:31
Getting Started With Stock Trading | Stock Trading Explained
Stock trading consists of actively buying and selling shares of a certain company's stock. Learn all about it with Titan's Christopher Seifel.
Video Transcript
Stock trading consists of actively buying and selling shares of a certain company. There are many different trading strategies, day trading, swing trading, trend following. Just to name a few. These strategies are most often accompanied by technical tools that utilize data and analytics to estimate optimal entry and exit prices. Trading is in many ways based on skill and information; however, the role luck plays in the outcome varies based on the time frame. Daily price action, meaning what the stock price does in any given day is mostly random and can be influenced by external factors. Those factors could be anything from a Reddit thread to a supply chain crisis.
There are different types of orders when it comes to buying and selling different types of securities. For example, a limit order is an order to buy or sell a security at a specific price or better. This means that a "buy limit order" can only be executed at the specified limit price or lower. Since this would give an investor a better cost basis on an investment. Fun fact, the first modern stock trading occurred in 1611 when the Dutch East India Company decided to raise capital by selling stock and paying dividends of shares to their investors. This move led to the creation of the Amsterdam Stock Exchange. How far we've come.
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