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If you are a newbie to stocks trading then it is imperative for you to read this article. This article is written to provide you with the usual terms used in stocks trading. As a brief recap, a stock trading is the act of buying and selling of stocks through a broker who acts as a medium for the client and the trader (company). When you buy a company share or stocks you are considered as a part-owner of the company where you get to enjoy privileges like voting rights.

A capital gain is the term used to describe the increase or the profit that your capital gained through the positive trends in the market. It is usually what investors are after that is why they invest through stocks. The higher the number of shares an investor purchased from a company, the greater the capital gain he will acquire lest the company remained good market performance.

A buy and hold strategy is the term used when a stock is bought and held for a long period of time regardless of the fluctuations or positive rise in the market. This is in belief that in a matter of years, a stock may increase its value to more than 100% of its original capital gain. Some people exercise this strategy while some dont, for they would not want to wait long enough to access their capital gains.

A current market value is the term used to describe the current worth of portfolios, stocks or shares. This is not fixed in value because fluctuations in the market generally affect the price of shares. In order to have high capital gains, people wait until the stocks are priced at a minimum market value. If the company starts to gain its value in the market, shares dramatically shoots up leaving the investor happy with high capital gains.

Aggressive is the term used when the investor invests on a high risk shares usually involving huge amount pf shares. It is common knowledge that the more share you acquire, the greater the risk involved within it. It is also true that the greater the share, the more gains you can have with it if you were able to time a favorable market. Aggressive trading is usually played by sophisticated investors involving fast growing companies.