I am new to stocks world. I was talking to someone few days ago, who is expert in stocks, and he was saying that in the morning when the stock market open, he starts his job by buying and selling X (or trading, i don't remember).
He said that you could gain or lose from $500 to 1M in moments.
My question is, what is this X? what he is doing? sorry as my question is not clear but this is the only way to know.
I am new to stocks world. I was talking to someone few days ago, who is expert in stocks,
Caution. They may be trying to sell you something by claiming they are an expert
and he was saying that in the morning when the stock market open, he starts his job by buying and selling X (or trading, i don't remember).
Unless they are working for a company that is tasked with buying and selling for investors, then they are talking about day trading.
A day trader spends their day buying and selling shares in a multitude of companies. They may only own them for a few minutes or a few hours, they are looking for opportunities that are fleeting.
He said that you could gain or lose from $500 to 1M in moments.
To lose millions in minutes you would have to be investing a ton of money into a particular company. Unless of course they are investing in even riskier products that allow you to invest with leverage so that you can multiply the amount to can make or lose. They may also be investing in other instruments where you are not directly investing in the company but are still betting on the way the market will move.
They could even be trading Crypto currency because it is more volatile than investing in stock or bonds.
My question is, what is this X? what he is doing? sorry as my question is not clear but this is the only way to know.
As discussed above X could be a range of things. Only they know exactly the things they are trading.
The caution still stands. Unless you completely understand the market they are working in, the risk are even greater.
