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Wednesday, October 14, 2009

Stock Trading The Right Way

By Mike Swanson

Stock Trading works for many investors because it is a lucrative method for earning a profit. You do not have to use large sums of money to get started buying stock picks and you will be able to liquidate

The terminology is the place to start for beginners. The market language fits the manner of marketing used, so the word trading actually means buying and selling. So you will buy and sell stocks and you can do this two ways. Electronic or computer trading and off the exchange floor. The NASDAQ uses the computer network and the NYSE uses the exchange floor.

The electronically traded stocks work off a computer network on the NASDAQ and matches buyers and sellers. You can find pension funds, mutual funds, and more. Most prefer this method of trading. The reason for this preference is the advantage of keeping up with your investment and working from the online network. You still need a broker in order to access the NASDAQ. You can keep up with your investments while beefing up your portfolio.

The NYSE works with brokers. You need to hire a broker to buy you shares of a company. The broker will send your order to the exchange floor clerk. The clerk declares a Brokers trade is on the floor. The brokers willing to sell get together to sell the shares.

As one brokerage firm knows the other brokerage firm and what stocks they deal in, it is a very easy to acquire the stocks. The two brokers agree on the price. Then your brokerage house is informed to call you to agree on the final price of the stocks.

You will receive through the mail, confirmation of the transaction. The daily basics are dealing with blocks of stock. Then trading, using complex details and trading methods. - 23208

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