What is Stock Jobbing
Stock jobbing is the buying and selling of securities with the intent of generating quick profits. While most investors seek value through long-term investments, stock jobbing takes on a more speculative short-term tone. Stock jobbing can be referred to in modern times as day trading. As opposed to using fundamental analysis and investing for the long-term, stock jobbing types will use shorter-term technical signals such as charting or heat mapping to generate short-term gains.
BREAKING DOWN Stock Jobbing
Historically, the term stock jobbing was largely used in reference to the South Sea Bubble — an 18th-century stock that literally wiped out the savings of many British citizens. These days it has given way to the more modern term of day trader. Day traders generate short-term gains using technical signals such as charting, heat mapping, and other momentum plays.
Example of Stock Jobbing
For example, Bert is a stock jobber who is watching XYZ stock. He has been analyzing the price chart and noticed there is a price support point at $25/share. The price often dips to $25 a share but never goes below it. If the price drops below a support point, it can be thought of as the start of a longer-term downward trend. Bert, who subscribes to charting methodologies, is going to sell XYZ stock if it dips below the support point.