You always hear about stock trading, buying stocks, selling stocks, and a host of many other concepts and terms related to the stock market. But often you wonder, what all of these mean. Sure, you have some idea about how the stock market works but your knowledge is very limited. Somehow you want to learn more about this not only so you don’t get left behind but also so you can consider joining the industry. After all, it is lucrative and can allow you to earn what you won’t normally earn from a day job.

So what is trading stocks all about? Here are the basics that you should learn about.

Trading stocks is not like trading things like basketball cards. It does not have anything to do with exchange of items. Rather, to “trade” in the financial market jargon means to buy and to sell. There are two basic methods by which you can partake in the buying and selling of stocks. The first is on the exchange floor.

Remember the scene that you often get to see on the television or in movies where a floor is filled with people shouting, gesturing, looking at monitors, calling on their telephones, and so on? That’s exactly what the exchange floor is. Here in the United States, the New York Stock Exchange (NYSE) is the main exchange floor. Other major stock exchange floors are located in Hong Kong, Japan, London, and China, among many others.

A simple trade on the NYSE would entail these steps. First, you tell your broker to buy 100 shares of a certain company listed at the market. Your broker’s order department will then send the order to their floor clerk. This floor clerk will order one of their floor traders to find another floor trader who wants to sell 100 shares of that particular company. After agreeing on a price, they seal the deal. Days later, you will receive the confirmation notice of the 100 shares you’ve bought.

The second method is through electronic means. The advent of the Internet technology has revolutionized people’s way of buying and selling products and services. It did the same thing for stock trading. How to stock trade usually meant going to human brokers but the online route only entails the use of online stock trading platforms to match buyers and sellers. Many attest that this method is much more convenient and easier, but that is of course, if you are Internet savvy and you know your way around the online world.

The two methods have their own pros and cons. The traditional method is suitable for people who prefer hands on stock trading and interaction with human brokers and traders. The other route on the other hand is ideal for people who do not have much time to do it manually. It is also appropriate for people who are knowledgeable with the ins and outs of the Internet world. Before you go into this industry, be sure to study it very well and ask experts advice so you don’t lose your way around.

Author Bio: For more details about how to stock trade please visit https://www.tradestocksamerica.com/stock-trading-course.php

Category: Business
Keywords: how to stock trade