How do I make profits with stocks?

But many traders make real profit in stocks using the market price of the stocks. Stocks are traded in the stock markets. The face value is the nominal value of the stock that is determined by the issuer of the stock. 'Market price' of a stock is the price at which currently a stock is traded in the market. This price may be at premium or lesser than the 'face value' of the stock, depending on the company's performance and prospects, investors' interests in the company and a lot of other factors.

Market price of a stock keeps varying as traders trade the stock in the market. Traders often make money using these variations in the market price of the stock. Stocks are bought at lower market prices and sold at higher prices later. This is referred to as 'long' positions in market terms. Similarly stocks can be sold at a higher market price and bought at a lower price later. This is referred to as 'short' positions in market terms. In these cases, the difference in the market prices at the time of buying and selling will be seen as profit by the traders.