Stock Trading involves buying and selling shares of ownership in a company. Unlike CFD trading, where you speculate on price movements without owning the underlying asset, in stock trading, you become a part-owner of the company.

When you believe a company's value will increase, you buy its shares. If the company performs well, the share price rises, and you profit by selling those shares at a higher price. Conversely, if you predict a decline in a company's value, you can sell your shares, hoping to buy them back at a lower price later.

Tips for Stock Trading:

• Long-term perspective: Stock trading is often considered a long-term investment strategy.

• Fundamental analysis: Understanding a company's financial health, industry position, and competitive advantage is crucial.

• Diversification: Spread your investments across different sectors and companies to reduce risk.

• Risk management: Set stop-loss orders to limit potential losses.

• Emotional control: Avoid impulsive decisions based on market fluctuations.

Here are some of the risks of stock CFD trading:

• Market volatility: Stock prices can fluctuate significantly due to various factors.

• Company-specific risks: A company's performance can be impacted by economic conditions, competition, and management decisions.

• Opportunity cost: Your invested money is tied up, limiting its availability for other purposes.