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The Internet has allowed people from different walks of life the chance to trade stocks as quickly as the professionals on Wall Street. As result, a new class of trader is discovering the benefits that stock trading has to offer over traditional investing.
Returns
When you are actively trading stocks, you can have better returns compared to the traditional buy-and-hold strategy: You can adjust quickly to changing market conditions.
Knowledge
As you are trading stocks, you become familiar with how the company trades, helping to improve your overall knowledge of the markets.
Strategies
When you are trading stocks, you can use multiple strategies to make money in various market conditions, such as shorting during the bear markets.
Hours
As you are trading stocks, you set your own hours. You do not have to report to anyone, and can trade stocks when it is most convenient for you.
Considerations
Actively trading stocks involves more risk. You must use strategies to protect yourself for the times that the trade does not work out the way that you had anticipated. An example of these strategies is the use of stop-loss orders.
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