To trade stocks is to buy and sell stock or shares in order to profit from the sale.
It is always best to buy when the stock is at a low price and sell when the stock's value goes up.
The risk comes in because often it is difficult to know whether values will go up or down.
In order to make a prediction, stock traders will read the company information and inquire as to its performance in the recent months as well as the general pattern the stock values have been following.
Stock trading may be done through a professional stock broker or it may be done by the buyer.
It depends on your level of expertise and/or trust in someone else which way you will choose.
Some people choose to do their own trading because they will not have to pay large fees for every trade.
Depending on the condition of the stock market in general and of a trader's particular stock, a lot of money can me made or lost.
When education and experience meet up with luck, a fortune can literally be made from buying and selling or "trading" stocks.
The two different types of stocks are common and preferred.
The common type of stock is ownership in the company without the benefit of voting rights.
While the stock is less expensive, it also carries less privilege.
On the occasion of a bankruptcy, these stock holders will be the last people paid - if they receive payment at all.
Preferred stock is ownership in the company that comes with voting privileges.
One piece of stock equals one vote.
The more preferred stock a person owns in the company, the more votes they will be able to use.
While preferred stock holders are paid before common stock holders, they too have to wait until creditors are paid off in the event of a bankruptcy.
Stock trading itself is pretty straight-forward.
To find out more, visit some online sites.
It is always advisable to educate yourself about stock trading before you choose to do it.
There are courses you can take that will teach you about the business of stock trading.