Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [trading]

Trading means exchanging one item for another such as goods for money. In finance, trading refers to the buying and selling of securities such as stock, options, or futures. Related tags are day-trading, trading-volume, and online-trading.

To be used for questions related to trading. Typically used for Stocks trading, can be used for Options or other trades. Related tags are day-trading, trading-volume, online-trading.

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Do I make money in the stock market from other people losing money?

Basically I am new to stock trading and neglect to see the differences between trading stocks and betting on sports. Basically I am "betting" on which company will do well, and this can change due to "upsets" just like in sports, but my main…
Asleepace
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Is it a good idea to copy a trader when investing?

I constantly get bombarded with an etoro commercial on youtube about a feature where you can replicate someone else's trading activity in real time. More details here. You select another trader and then you copy what he or she is doing, to get the…
Pips
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How can there exist a profession consisting of investing others' money?

How can there be a profession where some person sits at a desk and trades or invests for somebody else? If they are so smart and can predict the market so well, would they not long ago have invested their own money repeatedly in order to amass such…
confused
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Why does demand for stock rise when a company appears to have high future value?

So a company decides to raise money by selling shares of its stock. The stock is offered at an initial price of their determination. The stock is then traded in a market where forces of supply and demand, as well as speculation, affect its…
G-Wiz
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Why don’t index-tracking mutual funds corner themselves?

A lot of advice claims that low-cost index-tracking mutual funds are ideal. It sounds like a nice idea, at first. But then I thought: what if everyone did that? Indexes are reconstituted from time time, meaning that index-tracking fund managers…
hmakholm left over Monica
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How to profit off a stock price falling

How would one profit from a share price falling, granted that they correctly predicted it would happen? Say I had a hunch that a certain stock was going to fall next week, how could I effectively make a profit on this.
Welz
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Explain maker taker fees

Some exchanges have fees structured like: https://www.kraken.com/help/fees. The docs say "fees are calculated as a percentage of the trade's quote currency volume". There are two columns in the chart; I'm not sure what places me in one column or the…
user41221
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Difference between GOOGL and GOOG

Why are there two ticker symbols for Google — GOOGL and GOOG? They seem to be mostly identical, but their market values are different: currently, 551.64 for GOOGL and 548.79 for GOOG.
Nozdrum
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Shares: are they really only for the rich/investors?

I've always been under the impression that if you want to be a player in the "shares game" you either have to be an full time investor, or someone who has a lot of money to play with. Is this true? Can the average Joe become involved? Is it worth…
James
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Is it insider trading to purchase shares in a competitor?

I work for a publicly traded company, and part of my compensation includes stock. We've gotten a bunch of (recurring) training of what not to do with this stock to avoid insider trading -- for example, if we have advanced knowledge of something bad…
Roddy of the Frozen Peas
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How far removed from source does one need to be to avoid Insider Trading?

As I tried to research and ponder this question, I couldn't help but wonder: How many steps (i.e., persons) removed does one need to be from a source of material/non-public information regarding a company to avoid accusations of insider…
theforestecologist
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Is the stock market a zero-sum game?

In the stock market, over both the short and long-term, does someone necessary need to lose in order for someone else to make a profit? If not, then more fundamentally does something — in the most abstract sense — need to lose value in order for…
TheEnvironmentalist
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What is the meaning of "short selling" or "going short" a stock?

Can someone please explain the meaning of 'shorting' a stock with an example?
Amir
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Should I sell my stocks when the stock hits a 52-week high in order to "Buy Low, Sell High"?

I have a 10 stock portfolio and considering market conditions that are on the rise when this question in being asked, a few of them did hit their 52-week high price. I would like to call myself a long term investor and I do not like to trade so…
Lost
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Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?

I was reading this article about S&P 500 short ETFs: https://www.zacks.com/stock/news/176217/4-ways-to-short-the-sampp-500-with-etfs and I was confused when it said: "investors should note that such products are suitable only for short-term traders…
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