![]() Shorting a position can lead to theoretical unlimited risk if the security rises in market value. ![]() This strategy is used when a trader thinks a stock will decline in price, allowing them to profit from a down market. They may also participate in "shorting" a stock, which allows them to sell a stock they don't actually own. The goal is to buy low and sell high for a profit quickly. They often take a more technical approach, looking at charts and statistics that may provide some insight on the direction the stock may be heading. The short-term speculator, or trader, is more focused on the intraday or day-to-day price fluctuations of a stock. Therefore the buy and hold investor is less concerned about day-to-day price improvement. The goal is to find and invest in quality stocks that are going to provide a return or dividend for the long haul. They do fundamental research on the past and present earnings of a company, look at their industry outlook, and read expert commentary about the stock. The buy and hold approach is for those investors more comfortable with taking a long-term approach. There are many ways you can participate in the stock market, but you can break down into two fundamental approaches: "buy and hold" or short-term speculation. Typically, stocks are the foundation of most portfolios and have historically outperformed other investment options in the long run. Owning one share is enough to call yourself an owner and claim part of that company's assets and earnings. Account Types & Investment Products OverviewĪ stock is like a small part of a company. ![]()
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