Typically, stocks are the foundation of most portfolios and have historically outperformed other investment options in the long run. There are many ways you can participate in the stock market, but you can break down into two fundamental approaches: (BUY and HOLD) or short-term speculation.

The buy and hold approach is for those investors that are more comfortable with taking a long-term approach. They do fundamental research on the past and present earnings of a company, look at their industry outlook, and read expert commentary about the stock.

The goal is to find and invest in quality stocks that are going to provide a return or dividend for the long haul. Therefore, the buy and hold investors are less concerned about day-to-day price improvement. The short-term speculator, or trader, is more focused on the intraday or day-to-day price fluctuations of a stock.

They often take a more technical approach, looking at charts and statistics that may provide some insight on the direction the stock may be heading. The goal is to buy low and sell high for a profit quickly. They may also participate in (shorting) a stock, which allows them to sell a stock they do not actually own.

When investing and trading comes to your mind, there is a good chance you immediately think of one thing (STOCK). But how and why would you trade stock ? Lean the fundamentals on how to invest in stocks, including approaches and skills you will need to invest and trade with confidence. Understanding the basics, a stock is like a small part of a company. Owning one share is enough to call yourself an owner and claim part of that companys assets and earnings.