I am new to the stock trading, and I know hardly about the trading. What to do and how can I go ahead with the stock trading? These are the usual questions raised by any infant stock trader and there, is nothing wrong or unusual not only for the field of the stock trading but also for any area. There is nothing to worry about the stock trading and its terminology you can keep visiting these blogs, and I am sure you will start understanding these concepts slowly. Don’t be hurry, but spend more and more time going through the terminology regarding the stock trade so that you will be more and more familiar with the stock trading terms.
After you have entered the stock trading, you will start getting to know the new names and some of them are the long-term stock trading and short-term stock trading. These terms are a little confusing, even though you do not get the clear idea about what is discussed here, but don’t worry as the time going; you will keep getting more and more familiar with these terms.
Long-Term Stock Trading
Long term stock trading is something like you understand as positive stock trading. This is one of the interesting trading, which is conducted by experienced stock trading experts. Long term stock trading is something like you have the stock in the more significant number of shares. Though you do sell off the shares from the existing stocks, the kind of perception left on the fellow shareholders is different from the fact.
For example, if the stockholder holds one thousand shares of an individual company and the shareholder sells off 500 shares out of these shares. It means. Initially, one thousand particular properties are owned by the stockholder, and the owner sells off 500 shares from them. The apparent assumption of the fellow shareholder will be nothing but the concrete company is declining to a certain extent. But the fact remains that there are rest of the 500 shares are still with the stockholder, which means there is still an active state of the owner. But the perception that is passed to the public out is that the company is declining.
Short Term Stock Trading
Short term stock trading is quite different from long-term stock trading. The stock trading stands to be quite different, in which the stockholder has negative capital and to compensate them, the owner buys 500 shares. The general assumption that is passed to the stock world is that the company is growing. However, the truth is that the enterprise gets benefited and is growing. The overall impression of the short term stock trading is called negative stock trading.
It might be a little confusing at this point, but as time is growing, you will keep getting familiar with this kind of terminology.