Keep your perspective. Being a successful investor doesn’t require finding the next great breakout stock before everyone else. By the time you hear that XYZ stock is poised for a pop, so have thousands of professional traders and the potential likely has already been priced into the stock. It may be too late to make a quick turnaround profit, but that doesn’t mean you’re too late to the party. Truly great investments continue to deliver shareholder value for years, which is a good argument for treating active investing as a hobby and not a Hail Mary for quick riches.
Passive investing is what long-term investors do — and the intent behind their actions is very different. Their approach to buying and selling stocks is considered passive in that they tend not to transact often. Instead of relying mostly on technical analysis (as active traders do) and trying to time the market, passive investors use fundamental analysis to carefully examine the strength of the businesses behind the ticker symbols and then buy shares with the hope that they’ll be rewarded over years — decades, even — through share price appreciation and dividends.
Thinkorswim is a particular standout in options trading, with options-trading tabs (just click “spread” if you want a spread and “single order” if you want one leg), plus links that explain the strategies on the order page. Its Strategy Roller feature lets investors create custom covered calls and then roll those positions from expiration to expiration.
Keep your perspective. Being a successful investor doesn’t require finding the next great breakout stock before everyone else. By the time you hear that XYZ stock is poised for a pop, so have thousands of professional traders and the potential likely has already been priced into the stock. It may be too late to make a quick turnaround profit, but that doesn’t mean you’re too late to the party. Truly great investments continue to deliver shareholder value for years, which is a good argument for treating active investing as a hobby and not a Hail Mary for quick riches.
Not everyone who buys and sells stocks is a stock trader, at least in the nuanced language of investing terms. Most investors fall into one of two camps. Depending on the frequency in which they transact and the strategy driving their actions, they’re either “traders” (think Gordon Gekko in the movie “Wall Street”) or “investors” (as in Warren Buffett).
It's crucial to educate yourself before you wade into any type of investment or investment strategy. This beginner's guide to online stock trading will give you a starting point and walk you through several processes: choosing a discount broker, the 12 types of stock trades you can make, how to select individual stocks, uncovering hidden fees, expenses, and commissions, and much more. 
Day trading is the strategy employed by investors who play hot potato with stocks — buying, selling and closing their positions of the same stock in a single trading day, caring little about the inner workings of the underlying businesses. (Position refers to the amount of a particular stock or fund you own.) The aim of the day trader is to make a few bucks in the next few minutes, hours or days based on daily price fluctuations.

You probably know that investing in stocks is a way to get rich but very few new investors actually realize how you make money from your shares of stock. Now, you don't have to wonder any longer. Let's show you the two ways you can profit from owning and investing in stocks, and some of the factors that determine how fast a company grows. Find out how to make money from owning stocks ...


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