| Trading in stocks has existed since the 12th century. | | | | the stomach or the time for minute to minute |
| It has come a long way from men sitting in barn | | | | trading, there are other methods to investing in the |
| yards trading in a small community, these days, | | | | market. For example value traders are a much more |
| however trading on the stock market has changed | | | | rationale, risk adverse type of trader. They try to |
| to an almost unrecognisable degree. | | | | avoid the minute to minute fluctuations of the stock |
| Global stock markets not account for an estimated | | | | market by ignoring all the announcements made by |
| $23 trillion in money flows. Stock exchanges such as | | | | companies and just look at the average book price |
| the NYSE, NASDAQ and the London Stock Exchange | | | | of the stocks over a longer term. |
| are all market places for trading stocks on. These | | | | Value traders search out companies they believe to |
| markets facilitate the trading of stocks by bringing | | | | be undervalued possibly because it just announced |
| together buyers and sellers. | | | | profit warnings and now which led to a dumping of |
| Traders of stocks have many varied approaches to | | | | shares from the company. This leaves the stock |
| how they invest in the market. Some traders are risk | | | | price below its average price. Value investors buy the |
| loving and like to take large gambles when they | | | | shares at the depreciated price and then wait for |
| invest in stocks. These types of traders who include | | | | them to go up in value again. |
| day traders like to ride the wave of the minute to | | | | Trading on the stock market can take place in the |
| minute fluctuations in the value of stocks. | | | | traditional manner in which buyers and sellers come |
| This allows them to make a quick buck by constantly | | | | together on the stock market floor and stocks are |
| buying and selling stocks at a mind boggling pace. | | | | auctioned off. Buyers and sellers act on behalf of |
| Although there is the chance of making a very quick | | | | clients who place order for stocks to be sold or |
| buck this way this type of trading also runs the risk | | | | bought. In recent years the traditional method has |
| of making a massive loss. It is estimated that about | | | | been combined with an electronic method in which |
| 80-90% of all day traders make a loss on the stock | | | | orders can be placed over a network, or through the |
| market each day. | | | | internet. |
| However if like most people you feel you don't have | | | | |