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  • Lara P.

Understanding Trading

Trading refers to the process of buying and selling of stocks in the market. Stocks are parts of a company. Yes, it’s possible to buy parts of a company. Bonds and currencies are also sold at trading market. It’s a short-term investment. People wait until stock’s value increases and sell them again. But if there is a lot of people selling that same stock, prices will go down. And when many people want to buy stocks from the same company, prices go up. Supply and demand law, remember? Traders are investors. They work at the financial market trying to make money out of this process, by predicting which companies are to become successful, and buy their stocks when they are at a low price, to sell them later on. Here are a few examples of stocks currently, according to investing.com :



Petróleo Brasileiro SA - Petrobras Preference Shares


26.42 BRL +0.33 (1.26%)


Walt Disney Company

132,60 USD +0,06 (0,05%)


Twitter 37.41 USD −0.080 (0.21%)


Amazon

1,823.28 USD +7.80 (+0.43%) Photo Source: www.stocktrader.com


If you are interested in this topic, there is a film with George Clooney and Julia Roberts, called Money Monster (2016) about it. Some say it’s like a game, where you bet. But in fact it’s not. You have to understand how it works, and follow the market flow.


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