An equity investor or stock trader, either a professional individual or corporation, is someone or organization involved in trading stocks, equity securities or derivatives. Stock markets can be located on the Internet and involve many different kinds of exchanges. These exchanges can include retail traders, institutional traders, self-directed and leveraged funds, exchange traded funds and even mutual funds.
Most stock market participants to buy or sell shares of stock as part of a transaction to earn profits. There are some investors that buy and sell shares of stock as part of short term transactions. Short-term trading can be done through day trading, overnight, over the counter, futures, option trading and foreign exchange (Forex) trading. Day trading involves buying and selling shares of stock as soon as they are offered for sale in the open market, while short term trading is more complicated and involved.
Investors interested in Day trading should first learn how to trade stocks and options through an online trading account. The most popular trading site for new investors is the eTrade website. At eTrade, you can create your own personal trading account free of charge and use the training tools available to help you learn the basics of stock and option trading. You can also choose to go paperless by opening a demo trading account that allows you to practice and learn without risking any real money.
Investors interested in Short Term Stock Trading may also want to open a day trading account at a specialized brokerage firm. If you are planning to trade stocks through this kind of broker, you will need to open a specialized account called a discount stock broker which only deals with stocks and securities exempted from regular listing on the dominant exchanges. Some discount brokers do not give stock alerts or notifications. Others do give such information. Discount brokers may offer higher commission per trade as compared to other stock broking firms and may not require a minimum deposit.
Another alternative for investors interested in short term stock trading is to invest in mutual funds that invest in stocks and bonds issued by mutual companies. You can choose to invest in money market, treasury, bond, and municipal funds as these are the safest for short term trading. You can opt for exchange traded funds, as these are the cheapest. If you are planning to invest in emerging market investments, it is wise to remember that the rates there are fluctuates and so your returns might differ from those of the traditional stock markets.
If you are planning to buy and sell shares regularly, you can make use of a managed investment service which provides buying and selling advice and services to investors. It works by sourcing out the best-performing stocks and bonds from the stock exchange and then letting you know where and when to buy and sell your shares. If you are just beginning with investing, these services will prove extremely useful as you learn how the markets operate and how to identify good investments. As your knowledge of the markets grows, you may consider using other investing options, but these services will prove useful in the initial stages.