Finance Part 1: Trading Stocks
Stock trading does not literally mean trading or exchanging stocks but it involves buying and selling of stocks. There are basically two known ways of stock trading and these are: the exchange floor and electronic or online trading. This article is to provide us with a basic understanding on the difference and the characteristics between the two.
The exchange floor is the place where brokers can be seen. It is the place that we often see on TV which consists of chaotic and energetic shouting. Trading stocks in the exchange floor works like this: the client calls up his broker and informs him that he wants to buy a certain number of shares. The broker finds a floor trader who is willing to sell the equal amount of shares. The exchange floor features a giant screen where the status of the market is open for all to see.
Electronic Trading or online trading is where a client can have direct access to traders via an Electronic Communication Network. Through the internet he can directly buy shares from a company using a specific portal as the exchange floor. Some online trading systems are still connected to a broker who tracks the status of his clients shares. It is advisable to research more about the online broker that you plan to employ.
Trading stocks involves risks. If youre not the type of person who is open to risks then I suggest that trading stocks are not for you. However, try to go over your fear of losing money and start investing stocks with lower capital or with an amount you are most comfortable with. Remember that there are many ways to obtain financial freedom and trading stocks may just be an option that can work for you.
If you are already ready to invest in stocks, you may research more about the two methods to know which will work for you. - 23221
The exchange floor is the place where brokers can be seen. It is the place that we often see on TV which consists of chaotic and energetic shouting. Trading stocks in the exchange floor works like this: the client calls up his broker and informs him that he wants to buy a certain number of shares. The broker finds a floor trader who is willing to sell the equal amount of shares. The exchange floor features a giant screen where the status of the market is open for all to see.
Electronic Trading or online trading is where a client can have direct access to traders via an Electronic Communication Network. Through the internet he can directly buy shares from a company using a specific portal as the exchange floor. Some online trading systems are still connected to a broker who tracks the status of his clients shares. It is advisable to research more about the online broker that you plan to employ.
Trading stocks involves risks. If youre not the type of person who is open to risks then I suggest that trading stocks are not for you. However, try to go over your fear of losing money and start investing stocks with lower capital or with an amount you are most comfortable with. Remember that there are many ways to obtain financial freedom and trading stocks may just be an option that can work for you.
If you are already ready to invest in stocks, you may research more about the two methods to know which will work for you. - 23221
About the Author:
Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial I.Q. by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today.
posted by X - Men @ 12:40 AM
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