A stock trader, penny stock trader, or micro-cap stock trader is someone or entity involved in the buying and selling of smaller-cap stocks and equity securities. Penny stock traders can be either an individual investor, institutional investor, broker, hedgeger, or private stockbroker. Micro-cap traders are usually wealthy individuals who want to take advantage of a small cap stock market. This market is smaller than the blue-chip or large cap markets. If you want to buy micro-cap stock you will need to have more capital than blue chip stocks and/or more experience.
There are two types of trades: Buy and Sell. You buy shares and sell shares with one of the two forms of transactions. With a Buy, you are buying the shares yourself. With a Sell, you are selling the shares. In this way, you have control over which shares you sell and which shares you buy. The main concept is that you have voting rights on the issued shares.
You can have the best of both worlds with a CFD trading account. Trading opportunities are available on all market types and all time frames. One type of trade is the Buy/Sell Switch, where you are allowed to make trades within the range of the current market prices. This gives you the opportunity to “flip” trades, or put on and drop off depending on the current market trends.
Another form of trade is the Cap and Position, also known as Short Term Forex Trading. With a Cap and Position you are allowed to set your own limit and stop loss amount. You will only take the losses that are specified in the contract. With a CFD trading account, you are not locked into any trading opportunities at all. The only thing is that you have to be aware of the market price movements, and when you see a potential trade opportunity, you can jump on board.
There are different types of brokerage firms that offer these services. Some offer the service just for the equity markets, others offer their full service on the stock exchange itself. There are also private traders who work from home, who deal solely in the stock exchanges. You need to be sure that the broker you select has the knowledge, experience, and tools necessary to help you in analyzing the various stocks and options available to you in the share market.
Share trading, by its very nature, offers both short term and long term advantages to traders. With short term investors, it gives them the opportunity to pick and choose between different companies and shares. It is much easier for them to make trades and set limits than it would be if they were looking to hold on to a certain stock or investment for the long term. With long term investors, however, they have the ability to ride the stock market longer term. The advantages to this is that you do not have to worry about price movements during the off times between trading hours. It can be very challenging for some traders to stay with their shares through the ups and downs of the share market, especially if they are new to the market.