Stock market trading is known to many as high-risk bearing. At the same time, however, investors are aware that playing the stock market can be highly profitable. The key is to educate yourself and familiarize yourself with how things work on the stock market.

As an investor you always want to start with a solid plan of attack. A buy and hold strategy, for example, would be a good plan for one who wants a low risk deal. Other investors may be ready to put more skin in the game to get a larger or faster return. That strategy would focus more on up and coming companies that could be breaking out soon, or looking into Initial Public Offerings (IPO's). The second option isn't quite as safe but it could give you a greater return down the road.

Many new investors often overlook volatility -one of the most important features of the stock market. A high volatility means that the number of shares traded every day is high, therefore it is more likely that when you are ready, your shares will sell. An investor could be attentive with a stock that is unable to sell if the volatility is low.

If you are new to stock market trading then there are some terms you should become familiar with. A market trade for example is one that takes place at the current price of a share. Since prices can change rapidly with some stocks, you are better off placing a different kind of trade to minimize the risk.

If the investor wants to guarantee a price, they can place a limit order which specifies their shares will not be bought or sold until a specified limit is reached. A stop order is a way to trigger a market order once a specified limit is reached. Becoming familiar with this type of terminology is vital if you are a new investor.

Many trading sites now offer great stock option education tutorials at no cost. In addition to lessons like the option tutorial or glossaries of trade terms, it is now possible to find free practice trade accounts that allow users to get their feet wet in the market without really risking their assets. Remember, an educated investor is a successful investor.