Basics of Stock Trading - The Balance
The greatest portion of present day algo-trading is high frequency trading (HFT), which attempts to capitalize on placing a large number of orders at very fast speeds across multiple markets and multiple decision parameters, based on pre-programmed instructions. (For more on high frequency trading, see Strategies and Secrets of High Frequency Trading (HFT) Firms .)
One would think that options trading returns are easy to calculate, but there are some complexities. About one year ago there was an article written in a trading periodical about an options trader. To determine the average return of this trader, the writer of the article took each monthly result and averaged 12 months to come up with the average return for this trader.
‘Investments in securities market are subject to market risk, read all the related documents carefully before investing.’
A trading account allows an investor to set his own personal trading limits. Investors are allowed to buy/sell stocks, gold ETF, Forex, ETFs, and Derivatives using a trading account. A few benefits of trading accounts are given below.
While options do provide a lot of flexibility, it is important to realize that with any option strategy used on dividend-paying stocks , you will not be entitled to any dividends unless you purchase the actual stock before the ex-dividend date. With option strategies, you also will not be entitled to voting rights or any other benefits of stock ownership unless you own the actual stock. Finally, since all options eventually expire, they will generally lose value as their expiration date approaches, and may end up completely worthless, whereas a stock position can often be held for a very long period of time.
Trading options gives a trader leverage, and this can increase potential payoff and loss. Two areas where options can come in handy are for speculation or for hedging. In the former, a trader can use the leverage of options to bet a stock or index will move a certain way, raking in significant returns. From a hedging perspective, a trader can make a small bet by buying options that could protect against a market swing. Options can be an inexpensive insurance policy against bigger market movements that could destroy other aspects of a portfolio.
hi sir .. we’re proudly of u cause u making easy for us to understand forex very well. hopefully soon I’ll be okay.
You don’t need to know all of the technical details of how you buy and sell stocks, but it is important to have a basic understanding of how the markets work. It's generally worth digging deeper, but these are the basics you absolutely must know.
Candlestick patterns can be made up of one candle or multiple candlesticks, and can form reversal or continuation patterns. has many detailed explanations of these candlestick patterns; the links are given below:
A trading system can save time and take the emotion out of trading , but adopting one takes skill and resources - learn more here.
Technical analysis is the study of historical market data, including price and volume, used for forecasting the direction of a security. This discipline revolves around the analysis of charts to identify meaningful price action, confirm trends, spot trading patterns, predict potential reversal points, as well as assist traders and investors alike in setting price targets for entry and exit points.