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What is trading, in plain words

Beginner · 6 min read · figures as of Nov 5, 2026
Short answer

Trading means buying a stock, fund or other asset for a short time to profit from a change in its price, then selling it. An investor holds a company for years; a trader catches a move lasting from a few days to a few weeks. Both profit and loss come from the price move, so every trade needs a plan for limiting the loss.

Trading versus investing.

Both happen on the same exchange and through the same broker. The difference is the time frame and what the decision rests on: a trader looks at the chart, volume and the reaction to earnings, an investor at the business and its profit growth. A trader limits a loss with a stop-loss, an investor with diversification and time.

What traders trade.

US stocks: more than 5,000 companies on the NYSE and NASDAQ. Exchange-traded funds (ETFs): a whole index or industry in one security. Currencies, crypto and gold are other markets with their own rules and risks. This site is about US stocks and funds.

Kinds of trading.

Scalping: trades lasting minutes. Day trading: a position is opened and closed the same day. Swing trading: a few days to a few weeks; it fits around a day job, since the US market opens in the evening Tashkent time. Position trading: weeks to months.

How to start.

Open an account with a broker that has US market access and start with a small amount. Risk no more than 1% of the account per trade: position size is derived from the stop. Keep a journal of why you entered, where you exited and how it ended.

Today’s figures
  • Nov 5, 2026: of the 2093 most traded US stocks, 295 rose and 1794 fell
  • The day's biggest moves and their reasons are on the «Today's movers» page

FAQ

How much can you make trading?

There is no guaranteed income. Many beginners lose money in their first year; the result depends on following your rules and cutting losses in time.

How much money do you need to trade?

Many brokers have no minimum or a small one. But on a small account fees take a bigger share.

Is trading halal?

Scholars disagree on it. The different views are covered in a separate article.

Read next

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