Investing in Stocks: How Does It Work?
Conversely, technical analysis relies on scrutinizing historical stock price fluctuations and trading volumes to forecast future price movements. Once an investor opts to purchase a stock, they submit an order specifying the quantity of shares and the desired purchase price. Conversely, when they intend to sell, they set a target selling price and quantity of shares.
The stock exchange matches these buy and sell orders, and when a trade takes place, ownership of the shares shifts from the seller to the buyer, with funds being exchanged accordingly. Stock trading is associated with various risks, including market volatility, company-specific uncertainties, and economic factors that can influence stock prices. Successful traders often conduct comprehensive research, employ risk management strategies, and remain updated on market developments.