Simplified stock trading techniques that work
The more money this company makes, the more valuable that chunk of the company becomes. In essence, when you buy a stock, share or equity, you are buying into the company as one of the many owners. You have a say in how the company is run and operated by voting on who is on the board of directors for that company.
The board of directors oversee the company and make sure the business is making a profit for both themselves as well as the other shareholders from their stock. If not, they may choose to change the management or make radical alterations to the business. In order to maximize the money that can be made from this trading process, stocks are exchanged and swapped, based on whether that company has potential to make money or is at a low selling point. People make money because, for every share you acquire, someone else has sold that share at usually a profit.
The place where these buyers and sellers come together to settle on a price is called an exchange. There are several types of exchanges. There are those that are actual places you may go to as well as places that are built from a network of computers and web interactions.
You have probably seen video clips and pictures of the New York Stock Exchange, where traders stand a mass of outstretched arms, fistfuls of paper and a thick layer of shouts and yells. Despite appearances, the NYSE is the worlds most prestigious stock exchange. Orders come in through brokerage firms which then send a floor broker to a specific area where a specialist matches buyers and sellers, then auctions to stock off. Once a trade is made they are sent back to the brokerage firms.
In this I am going to describe the simplest, no cost principle for the day traders. I will not recommend you to buy any software or tools to implement my principle. Only tool you need is a simple mathematical calculator. Most of the time day traders used to forget their finest experience in the stock market. I have pulled those finest experiences and prepared this course for you. I have devised this study into two parts in part one I will describe the basic principles of day trading and in part two I will describe few examples and give you few home work.
You need to do some paper trade virtual trade to practice this principle. Many mentors say about discipline and trade objective. However trade can have objective. I always say do not expect too much from market. Be objective and keep minimum exposure with the help of decoupling method or option hedging. Must Read Article a. How to use 1SD level to form option strategy?
How to do intraday and positional trade using 1SD formula? Covered call option strategy using 1SD formula d. Multiple bull or bear spread using 1SD e. How to profit from the cross calendar option strategy?
How to make profit in straddle option strategy? Intraday GAV Technique h. Day Trading Made Easy i. Wise Stock Investment Tricks j.