Basics of Stock Trading – What You Must Know About Trading Stocks As A Beginner2 min read
Technology has made financial markets more accessible and reduced costs of trading online. This is why there are new people entering the stock market every day looking to make a killing. Have you been considering investing your personal cash in today’s market? Want some help learning how to buy and sell stocks? Is this money to be made if you get the basics right? Do you think perhaps stock trading courses can help? Before you jump in and start spending money on things that you don’t need read this article.
Trading is a Wall Street term for buying or selling shares of stock. There are huge numbers of shares that are traded every day and the details of how each transaction that takes place is fairly complicated. But, for our purposes we don’t need to know all of it. New investors or traders need to have a basic idea of these markets operate. The key point to remember here is that the trades are executed on the exchange electronically or through a full-service broker.
The Markets Demystified
When newbies think of stock markets, they imagine traders on the exchange screaming and trying to get their orders in. This picture is more accurate of the past where a lot more orders were placed on the floor. Nowadays a lot more trades are made electronically than through floor broker. In the past, when you placed an order with the broker on the phone. The broker would send an order to the floor clerk. The clerk would then go to the floor traders dealing with the stock you want to buy and then place the order. The trader and the clerk would shake hands on a price and the transaction would be consider complete. The clerk lets the broker know that your order is complete and your broker informs you..
So who needs brokers in these days? You just need a computer right? Well, you don’t need a full-service broker. But, you do need access to an online broker. These companies place your orders electronically for you. This is a fast, efficient and cheap way to trade. Most people prefer online trading due to these reasons and you can’t blame them.
There is more to trading stocks for profits than clicking a few buttons and placing trades. You have to research stocks, study price charts and stick to your basic trading strategies.