subject: Achieve Massive Profits From Stock Trading [print this page] One way to achieve massive profits is to trade on stock market. Trade refers to the act of buy and sell in the financial market. You may not earn a million dollars through trading, however, the profits are guaranteed to be of great value, especially if you invest right.
Some traders would tell you that it is not necessary to know exactly about the technical details of how the trading happens. Nevertheless, it is important to know the basic information on how the stock market works.
There are two basic approaches to stock trading. The first on is on the floor, and the second one is electronic.
The exchange on the floor is best manifested in movies and TV program, in which people rush in--shouting and gesturing to one another, talking on the phones, watching monitors, and entering data into terminals--the moment the market is open.
Before the markets close at the end of the day, and after accommodating all the trading, the markets prepare for the next day's chaotic activities. With this approach, the stock trading works in 4 steps.
First, you inform your broker to purchase 100 shares of stocks (of a certain company) at the market. Then the broker transmits the order to their floor on the exchange, who in turn, informs another floor trader who is willing to sell 110 shares of stock you have in mind. The two individuals agree on a price and close the deal.
Depending on the market, the notification may take a few minutes or longer. However, after few days, you will receive an e-mail notification. Whose stocks are earning and for how much are two considerations to achieve massive profits.
The second approach is the electronic trading. The electronic markets are using computer networks to match the buyers and sellers. It is efficient and fast as well. It lacks the physical activities of the traders who do the exchange on the floor.
The New York Stock Exchange prefers this approach while the NASDAQ opts for floor exchange.You will still need a broker to handle your trades because you do not have access to the electronic markets while the brokers do. When your broker accesses the market, the network and the system will find a buyer or a seller depending on your trade order.
You often receive instant confirmation on your e-mail. Moreover, it facilitates control of online investing by putting you a step closer to the stock market. If you are not too confident to invest on stocks immediately, you may first practice on trading simulators.
Hone your skills without the risks of losing actual money on stock trading simulators. Many individuals who currently achieve massive profits through stock trading had first practised on the simulators for free.
You can prefer to use online stock trading services like the Ameritrade, E*trade, and tradeking. From these services you can learn to exchange stocks faster and more efficiently. Transactions are all initiated over the internet in real-time.
There are also countless people who achieve massive profits through an automated stock trading robotic system. This can truly help you see your return on investments, as the automated stock trading robots scan the market daily, and identify the predictable factors and patterns that can drive the share prices up.
