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Stocks Basics: How Stocks Trade

Do you know what a stock market is? This a place where a buyer and a seller meet with the aim of deciding on the price of a certain stock. Stocks are usually traded on exchanges. The use of internet has made trading easy by use of the stock trading software.

Where are stocks traded?

Some of these exchanges are physical locations and in these locations transactions are carried out using the trading floor. Most people like stock trading because its can last a lifetime and this is the first advantage of stock trading. In floor trading you find stock traders throwing their arms up, yelling, waving and also signaling to one another. The virtual is the other very important type of exchange that comprises of computers and internet and in this exchange the traders’ trade electronically.

The Stock market

The stock market is where stock exchanges are done. It’s defined as a complex system that enhances the issue, buying and selling of publicly-traded companies. Other refer the stock market as a dark chasm or nebulous where people meet and gamble. But, in the real sense there is no gambling here, what is done is exchange of stock.  Most people today like stock trading because this kind of trading enables them to maximize profits and also expand their business or stock. To venture in the stock market you must be determined and willing because this is not an easy business as you may think. Stock trading can also be done online and this is what has greatly boosted this kind of trading. It’s now easy to trade your stock with somebody who is in another country and this is made possible by use of the stock trading software. More explained here.

Why stock prices change

There is a tendency of stock prices going up and down. What do you think causes this disparity? There are different factors that can determine whether the stock prices are falling or rising and among them are the well-known investors’ opinions, the media, social and political unrest, natural disasters, abundance or lack of suitable alternatives and supply and demand and many others. When you compile all these factors and any information that may be relevant you will find a corresponding numbers of sellers and buyers. When do stock prices fall? They tend to fall when the number of sellers is higher than that of the buyers. You are advised to read more online trading academy reviews so that you can know more about what stock trade entails.

Why it is hard to predict the stock market?

What do the stock traders do when they find that the stock prices are on the rise now and then? They usually sit back waiting for the opportune time to reach. Investors are aware and know that if there is a collection the stock prices will have to tumble. Therefore it’s not easy to predict the stock market.

Lastly, as a stock trader you need to be aware of the stock picking services. It is important to know the sock basics because they will help you to understand the stock market and also the prices.

Check out this link for more informations: http://www.investopedia.com/university/stocks/stocks3.asp