Trading

Anyone who has watched the film Wall Street knows how exciting and lucrative the business world can be. With the technology we have today, a regular John Doe can become the next millionaire with the right moves. Unfortunately like the movie, the stock market is a cut throat world where hard earned savings crash and burn.

Decide your Future

Cross Trade is the practice where buy and sell orders for the same stock are offset without recording the trade on the exchange. When a trade is unrecorded through the exchange, it's very likely that a client didn't get the best price. This is illegal on most stock exchanges. Cross Trade occurs when a broker executes both a buy and a sell for the same security from one client account to another where both accounts are managed by the same portfolio manager.

In the pre-open phase of trading, buyers and sellers can place their orders onto the market, but no actual trades happen until the market opens. Trading before the market opens can happen when a possible exchange-traded option has been exercised. Bigger trades also occur, which are actually off market (change of ownership in large holdings of securities without direct impact on market participants).

Strategy is essential when you start trading, and part of that strategy is using timeframes. A timeframe is the relative amount of time that you expect to spend in a share. Each time frame displays the same data, but in different intervals. Examples of intraday timeframes are 60-minute, 30-minute, 15-minute, 10-minute, 5-minute, 3-minute, and 1-minute. Typical preferred share trading time frames are longer: monthly, weekly and daily.

High-frequency trading is the execution of computerized trading strategies characterized by extremely short position-holding periods. In high-frequency trading, programs running on high-speed computers analyze market data, using algorithms to utilize trading opportunities that may open up for only a fraction of a second to several hours.

Financial News Networks like CNBC, Bloomberg and Fox can be bad for traders but also can be helpful to traders. These financial news networks can provide informative reports about the forecast of share prices, dividends, and other relevant information. However, blindly following recommendations from these news networks can be bad for traders.

Before beginning on your trading journey, you must first learn some share trading basics. You can start trading on the Australian sharemarket for as little as $500 plus brokerage costs, but most people start with $2000 minimum. Share trading involves the buying and selling or selling and buying of a stock – capital growth or capital decline for profit. Before you even starting buying and selling stocks like a mad man you must first ask yourself the following questions:

• What do you want to achieve from your share trading?

Is trading gambling? It’s a question that’s bound to pop in your mind if you’re an active trader in the markets. Trading seems like gambling. You risk a portion of your capital into this thing: this concept we call a market. You put in your money and your money can do one of three things: return you an increase in capital, return you the same amount or return you less. Very similar to putting in money into the slot machines and getting those returns isn’t it? So are traders gamblers or not? Let’s examine it.

Everyone wants to know the secret on how to do anything. What is the secret to success? In most pursuits it would be persistence and perseverance. And that is certainly true with trading the markets. Being persistent in your trading and persevering through the tough times will eventually lead you to trading success. But you're here to learn the real secret to successful trading. What's the secret? Is it the trading system? Is it the type of market? Forex, stocks, bonds, options, commodities, futures or mutual funds? Do you have the next hot tip?

How can i trade in share market? I can invest up to $1,500 for six months?

Trading and Investing are two different things. Trading should be a long term thing. Although your trades are in the short term, there is always a possibility of loss - you can't always win. And that's the inherent risk in trading.

So if you need the money back in 6 months, just put it your bank account.

But, if you treat trading seriously and professionally, it can pay off... Of course profits are never guaranteed.