Many years ago stock trading was reserved for the very wealthy or for those individuals that had the right connections. However, with the explosion of the Internet and the ability to easily trade stocks online it has become more common for anyone with money and a desire to trade to buy and sell stocks of almost any company. Perhaps the only stigmatism that still exists is the necessary knowledge needed to understand the terminology associated with how the stock market truly works. The fact is knowledge is power and the more information you possess on how to trade stocks the better your odds become at actually making money in the long run.

Even with the use of the Internet most stock trades are down by a middle party known as a broker or brokerage service. This entity is responsible for taking your stock buying and selling orders and executing them. Some brokerage companies offer stock-picking advice related to the current conditions of the stock market. There are two primary brokerage firms. The first are usually referred to as full service brokers. They offer the most stock picking advice but they also charge a fee or commission for their service. The second type of brokerage firm is the discount broker. They are extremely popular amongst consumers that don't really need any type of financial advice and are merely looking to purchase and sell their stocks at a discount.

The Internet age truly is marvelous and it clearly shows with the technological advances that allow online trading, interactive systems that take stock orders placed over the phone and the relatively new method of buying and selling stocks through web enabled phones and high end electronic handheld devices.

Many brokerage firms offer software that allows you to effectively track your most recent buy and sell transactions. They also usually offer some form of software that analyzes stocks allowing you to make a more informed decision when it comes to buying or selling your favored stock pick.

Some terms that you should definitely become familiar with include the following: Market Order This refers to the action of buying or selling a stock at the current market price. Even with the most advanced technology your order won't exactly happen at the price you want. There is a slight delay that occurs which allows your action of buying or selling the stock to occur as close to your preferred price as possible.

A more complicated order is called the stop order. This order is normally executed by more advanced stock pickers who are looking to purchase a stock at a certain price (identified through analysis) above or below the current quoted market price. This form of purchasing a stock is sometimes used as a hedge in order to limit any possible losses that may occur from your stock action or to protect any profits that you may have already made.

As you can see stock picking can be easily down by anyone with an Internet connection and a little bit of knowledge. However, no matter how easy it has become to buy or sell stocks it's still a good idea to familiarize with the many stock-trading terms. After all the informed investor often becomes the richer investor.