Stocks that aren’t listed on a conventional exchange but trade through the NASDAQ system are managed with a very different mechanism. There’s absolutely no centralized exchange, but there’s a method of competing market makers who post quotes on NASDAQ stocks. The spreads between the bid and ask prices are normally much larger for NASDAQ stocks…
Tag: market
Emotion and Stock Trading
The stock exchange is driven solely by human emotion. Nothing else really matters. Human emotion is driven by perception, and perception is jaded by expectations. If your expectations aren’t fulfilled, than your perception is that this is awful. If your expectations are high, you likely will be disappointed. The trick then is to gauge the…
Investing in Stocks
There have been a great deal of books written about how to be a smart investor and how to time the market. In fact, many folks make a living on creating a”system” to time the market and then sell that system to other men and women. While there are a whole lot of indicators that…
The Secrets To Determine Stock Market Position Sizing
When trading in the stock market, position sizing is where all the tools of money management come together. It is perhaps the most important part of your stock market money management rules. Position sizing is simply deciding how much you are going to enter any one stock market trade. You can calculate your position size…
The Seven Mistakes All Novice Traders Make and How to Correct Them
We learnt the following the hard way! If any of these things applies to you, do not worry – there is a simple solution! Lack of Knowledge and No Plan It amazes us that some people expect to trade the stock market successfully with no effort. Yet if they would like to take up golf,…
Traders, Defend Against the Dreaded Death Spiral.
It’s often been said that there’s only two ways to get hurt really bad on a stock exchange, becoming caught in a”death spiral” by not using DTM: Decisive Trade Management in the means of stop loses and using a stock stopped on you. Halts you have zero control over. Death spirals are of your own…
12 Basic Stock Investing Rules Every Successful Investor Should Follow
There are lots of important things you want to know to trade and invest successfully in the stock exchange or some other market. – Buy low-sell high. As straightforward as this concept seems to be, the huge majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine…
Ignore Stock Market ‘Talking Heads’
You should ignore analysts on TV, the radio, the paper and other TALKING HEADS when it comes to investing! What stocks do they speak about? – The same old group, every day of every year – Why? Since they do not know any better, they’re sheep such as the general public, repeating what every economic…
Forces that Move Stock Prices
One of the largest forces that affect stock prices are inflation, interest rates, bonds, commodities and currencies. Sometimes the stock market suddenly reverses itself followed by printed explanations phrased to suggest that the author’s keen observation allowed him to predict the market turn. Such circumstances leave investors somewhat awed and amazed at the infinite amount…
Basics of Stock Market
Financial markets provide their participants with the most favorable conditions for purchase/sale of financial instruments they have inside. Their major functions are: guaranteeing liquidity, forming assets prices within establishing proposition and demand and decreasing of operational expenses, incurred by the participants of the market. Financial market comprises variety of instruments, hence its functioning totally depends…