| The stock market offers various opportunities for | | | | selling the actual shares, one would enter into a |
| trading. Apart from the main securities, which one can | | | | contract with a broker to buy or sell a particular |
| trade on various exchanges like the New York Stock | | | | share at an agreed price. The price would still be the |
| Exchange and Nasdaq, there are other forms of | | | | market price at the current time, and the speed of |
| trading like forex trading, currency trading and | | | | transactions is similar to the speed of actually trading |
| ‘contracts for difference’ also known as | | | | the shares, i.e. a few seconds. One of the |
| CFDs. | | | | advantages of CFDs is ‘trading on margin’. |
| Click to Get Best Forex Automatic Trading Robots | | | | Some brokers offer very competitive margins where, |
| Stock market trading normally involves opening a | | | | for example, with a capital of $20,000, one could |
| trade by going ‘Long’ (buying) or going | | | | trade shares for a total of $100,000. This can be |
| ‘Short’ (selling). The later has been possible | | | | very dangerous and is only advised to the |
| through the last few years. One can today | | | | professional market players. |
| ‘sell’ a stock with the aspiration that the | | | | Click to Get Best Forex Automatic Trading Robots |
| stock goes down and buy it cheaper at a later time, | | | | Technical Analysis |
| thus making profit as a result of the diminishing of | | | | Hundreds of technical tools exist for traders. Various |
| the stock value. | | | | software systems can display a stock’s chart in |
| Greed and Fear | | | | real time, enabling you to draw trending and trading |
| Stock market trading can be very profitable but if | | | | lines, include calculations like moving averages and |
| not mastered correctly can lead to heavy losses and | | | | ratios, and some can even predict the price based on |
| the loss of ones own capital. Various psychological | | | | a combination of factors and previous training and |
| factors can affect the way one trades. The most | | | | testing cycles. |
| predominant ones are ‘greed’ and | | | | Charts |
| ‘fear’. Greed kicks in when your system | | | | Charts are a must for most stock traders. A chart |
| directs you to exit a trade but rather than exiting, | | | | tells the story much more than words do. By looking |
| one remains in the trade with the hope of closing the | | | | at a chart, a professional trader can diagnose the |
| trade at a better price. On the other hand, fear is | | | | condition of a particular stock, just like a doctor does |
| also a very dangerous factor which can lead to | | | | with his patient. Adding some analysis tools to a chart |
| exiting trades when the time is not right, or exiting | | | | can further help in understanding what is going on |
| trades too early. | | | | with a particular stock. |
| The best way to keep these feelings away is only | | | | On charts one can determine whether a stock is |
| one – follow your system vigorously. In order to | | | | overbought or oversold, whether a stock is reaching |
| fully trust a system, it would first need to go through | | | | a support or resistance level, is heavily in demand and |
| a lot of testing in order to seed in one’s mind | | | | short of supply or vice versa. As a result of these |
| the thought that the system works and is | | | | factors and many others which one can include in a |
| completely reliable. It is only when one is convinced | | | | system, a decision to buy, sell or exit trades can be |
| of this that when the feelings of ‘greed’ and | | | | taken. |
| ‘fear’ rise, they are controlled and ignored. | | | | Stock market trading is a high return job for those |
| CFD Trading | | | | who are serious about it. Various methods exist and |
| One very interesting way of trading is CFDs | | | | some degree of research is required before one can |
| (contracts for difference). Rather than buying and | | | | start trading for a living. |