Stock trading is the buying and selling of shares in publicly listed companies with the goal of generating a profit. When you buy a share, you own a small piece of that company — and if the company grows in value, so does your stake.
How Stock Exchanges Work
Stocks are traded on organised exchanges such as the New York Stock Exchange (NYSE), the London Stock Exchange (LSE), and the Johannesburg Stock Exchange (JSE). These exchanges act as regulated marketplaces where buyers and sellers meet electronically to agree on prices.
Why Do Stock Prices Move?
Prices are driven by supply and demand. If more investors want to buy a stock than sell it, the price rises. If more want to sell, the price falls. Factors that influence this include company earnings, economic news, interest rates, and broader investor sentiment.
Types of Stock Traders
Day traders open and close positions within the same trading session. Swing traders hold for days to weeks. Position traders may hold for months, aligned with longer-term trends. Each style requires different skills, time commitment, and risk tolerance.
How to Get Started
To start trading stocks you need a brokerage account, some starting capital, and a basic understanding of how markets work. EureOnline's free courses walk you through every step — from opening your first account to placing your first trade.
Take your knowledge further with EureOnline's free stock trading courses — built specifically for Zambian traders.
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