New to investing? Don’t seek out quick gains when buying stocks, here’s why

New to investing? Don’t seek out quick gains when buying stocks, here’s why

Dubai: When you’re new to stock market investing or trading (buying or selling) shares real-time, buying into the latest ‘hot’ stock can seem like a good way to get started, but trying to profit from short-term changes in a stock price can carry a great deal of risk. The traditional way to deal with putting resources into the stock market includes, ‘buy and hold’, wherein stocks would be purchased and held for weeks, months, or even years. In short-term exchanging, stocks are for the most part bought and held for a couple of minutes or hours. How can you profit from a small short term price movement? The answer lies in mastering what is referred to as ‘active trading’. But how does one profit when a stock’s price changes in a brief period? Short-term trading uses the market's unpredictability to make profits in the most extreme way. While it can be a good way to earn money, and many do it as a profession, but to succeed in short-term trading, it is important to have in-depth insights into how the markets function. “A significant way short term trading differs from traditional ‘buy and hold’ approach is, here the focus is