Trading Stocks in Canada



Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max
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Canadastock.ca is commited to providing quality stock data and analysis to Canadian investors and those living abroad.

 

This section of the site has one goal - to provide information and strategies for Canadian traders.

If you think you've come to the right place, but you're not sure, you need to make the important distinction between trading and investing. Traders buy and sell stocks, options, futures and other investment instruments to make a relatively fast gain. They are not interested in holding the instrument for an extended period, they are interested in capital gains.

Depending on the type of trader you plan to be (or currently are), you may hold the stocks or options you buy for days, months or minutes, but not usually for years.

Investors, on the other hand, buy stocks and other investments to hold generally for a long term. They are not considered in swings in value in the short term. They are in it for the long haul with the firm belief that the investment they have made is going to have long term growth.

For example, a trader might buy shares in Microsoft because they believe that a recent drop in price is unjustified; an investor will buy shares in Microsoft because they believe in the long term fundamentals of the company and they want to own a portion of the company.

Now that we've gotten that important distinction out of the way, we can get to the stock trading articles that we want to provide to you. There are many different types of traders. There are swing traders - who trade based upon weekly or monthly movements in a stock or other.

There are day traders, who invest in stocks daily, constantly buying and selling and who very rarely hold stocks over night. This is considered to be one of the most risky and difficult forms of trading. Day traders have to be nimble to catch tiny movements on generally high volume stocks.

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