Why stock trading?
All the traders hope that their share trading will give them a good return in future. The income can be in form of dividend and capital gains.
1. Dividend
A good company normally gives dividend every year. Certain company may give more than a time in a year. But beware of the company that not in profit but giving dividend or company that normally giving dividend but suddenly omit it. Something may happen and the investor may not inform.
2. Capital gains
This is the most common objective of the stock trader trading in stock market. Both short term and long term trader are looking for capital gains. Capital gains can be obtained by increasing of the stock price. For example when you purchase a stock at $5.00 per unit and when later the price increases to $6.00, you will get $1.00 per share when you sell it.
The trader must understand that not every time they can gain from their investment. So be sure to pick the right stock and plan your investment.
