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The following article was published in our article directory on January 30, 2012.
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INTRODUCTION TO STOCK TRADING

Article Category: Finances

Author Name: chickie maxwell

Definition of Terms

A stock is the capital invested by people who put up a business. It is recognized as distinct from the value of a business's assets in a way that it is stable and its value is proportional to the amount of money shared by business owners to make a business functional. Stocks serve as security to the investors because it cannot be withdrawn. In daily life, stocks keep a business running.

Trading is the business transaction that involves exchange of commodities in the market. Historically, trading took the form of barter exchange. In modern times, money became a medium to exchange currencies to obtain products or services.

Stock trading is in context, the interaction between buying and selling a capital or a bond between stock traders and private individuals.

Types

Traditionally, trading stocks was done in the confines of the exchange floor. Similar to the marketplace where goods are being acquired, the financial market has its own physical whereabouts. Globally, the following locations are few and the biggest places where stock trading occurs:
- New York Stock Exchange
- Tokyo Stock Exchange
- London Stock Exchange

In compiling a list of the locations where stock trading occurs, on will find a relationship between all of them: they overlap with the global time zones. This is because money is fluid all the time.

Presently, even ordinary individuals can become stock traders with the introduction of the internet. People are given the ability to place their trades online. A few are even taking advantage of stock trading software where the computer program is responsible for placing the trades while the owners go about their daily schedules. Others employ stockbrokers to place trades for them depending on market trends and their inclinations. In place of stockbrokers, online trading uses a network of computer systems to complete purchase and selling transactions.

As a Profession

Some people opt to place trades by representing others than themselves. If you are wondering how to become a stock trader, know this process:
You need to finish an internship program
You will need to pass the examination administered by the Financial Industry Regulatory Authority

It is a requirement that you become familiar with the compliance policies established by the Securities and Exchange Commission.

You can push through with a professional credit by taking a course related to finance, business, accounting, or economics.

If you wish to move on at a supervisory level, you can proceed by taking a Masters Degree in Business.

While your educational credits may eventually be impressive, it should be noted that like all other jobs, stock trading can be a simple and a linear process and it can also be complex and chaotic. You will assume responsibility for trading stocks, bonds, and shares. Apart from that, you will also be analyzing patterns in the market and be ready to pounce on opportunities that lead you to close a good trade and further the amount of investment your client has or maybe your own.

Keywords: stock trading

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