Stock Trading vs. Gambling

You can have all the resources, tools, knowledge and experience at your disposal, but if you cannot get a grip on your emotions, most likely you won’t do very well in the stock market. Active participation on a daily basis can wear and tear on your nerves, especially in the NASDAQ Level II market where there is considerably more risk. You must learn to manage your own psychological reactions to risks, winning, loosing and continuous temptations. Controlling your emotions in an illogical manner isn't something you learn over night. Emotions are natural reactions to other stimulus in our lives. For example, if someone pulls a gun on you, your first inclination might be fear, panic, holding your hands up, yelling “don’t shoot”, and possibly all of those things. It’s natural to feel that way.

You are not likely to say something such as, “Hold on a minute. I need a good cup of coffee first.” That would be a calm, unworried response. When you’ve lost thousands of dollars you have invested, the last thing you want to do is remain calm, unworried, and run home to tell your spouse the not so lucky news. Your first inclination might be to get it back as quickly as possible, which leads people into unwarranted, rash decisions that could possibly turn out to be even worse. Get a grip. Be patient. Weigh the possible outcome risks with your next available choices. Don’t make a bad or unlucky decision create a domino effect of other misguided choices. If the temptation to do something quickly is still floating among your brain cells, get away from the stock market. Take a break until you feel more relaxed and level headed, even if it takes several days. Do not make another move until your emotions are in check.

Nearly 80% of people who attempt this industry fail and quit. They either can’t handle the stress, trade with their life savings, or they make several bad decisions out of ignorance or blind emotion. The first step is to recognize the limitations and tolerance while taking the risk and then accepting the possible results of the risk. This is easier to do if you are trading with a stash of money you have set aside specifically for this purpose. However, if you are trading with your life savings, bill money or your retirement money, the outcome of losing it would be much worse than losing money you don’t need to live on. This greatly increases your emotional stresses, thereby, greatly increasing your chances of making the wrong decisions and losing it anyway.

NYSE

New York Stock Exchange (NYSE)

The NYSE is set up similar to an auction-oriented system, in which a specialist who is essentially an auctioneer represents the sale of a particular stock. Since all business conducted at the NYSE is open to full public view, the specialist opens the market by establishing two-way communication between buyers and sellers. Specialists may represent more than one stock, but only one specialist can represent the stock itself. Not only do the specialists oversee the stock exchanges, but they also have the ability to shift stock prices to better leverage liquidity. The idea is that all buyers are treated fairly and transactions are conducted smoothly in an environment where the investors concerns are top priority.

Stocks traded in the NYSE market are generally considered listed securities since they represent some of the larger, more established companies. Such businesses have huge capitalization and a long history of consistent earnings from year to year. Such security provides a market where prices are a little less volatile. Prices move at a more moderate pace and do not frequently shoot up and drop down at a moment’s notice, providing an easier means by which to anticipate and predict market movements. For this reason alone, day traders find it easier in knowing when to make their move in the NYSE market.

If you decide to buy 200 shares of GE stock at market price, then you would need to place a market order. The market price is the most current listed price at the moment of your purchase. Your other option would be to place a limit order, which is a specific set price below the current offer. The specialist records your limit order until a matching seller is willing to sell at your set price.

Specialists are required to fulfill any orders they receive, meaning that if there are still unfulfilled orders at the end of the day, then they generally buy the stock themselves. The role of the specialist is to provide liquidity in the stock they represent, even if it means risking their own capital to bridge what they hope are temporary gaps in the market.

There are three ways in which you can place a market order.

· You could place an order through your broker on the Internet or by phone. Your broker then sends your order to the NYSE floor where a floor broker who represents your broker approaches the specialist with your order. The price of your order will be confirmed through your broker.

· Once your broker receives your order, he/she could submit your order through a SuperDot machine, which is a computerized system that sends your order directly to the specialist. From there your order is fulfilled at the exact price and number of shares and sent back to your broker, who then informs you of the news.

· Skip the broker and place the order yourself on a level II order entry software system that contains a superDOT button for order execution. Send the order directly to the specialist and wait a minute or two for a response.

Stock Market

The stock market is no longer a “members” only field game of stockbrokers playing the market. Like so many other industries, the Internet has changed the market and the way we do business. With the click of a button, the average individual now has access to the same information and facts that only stockbrokers were privy to a few years ago. Gone are the days when market traders and specialists had the advantage of profiting from the ignorant public.

With today’s technology, you have the same opportunities as the professionals at your fingertips. The difference, of course, is knowledge and experience, both of which are within your grasp. High-speed access to information, providing real-time quotes and instant online trading has sprung day trading into a new profession of its own. People are realizing that they too can master the concept of day trading and compete professionally in a level-playing field.

Today the only obstacle in the path of a rookie is experience and that can be obtained only through time and practice. Even though nothing can compete with the reality of experience, a good education could help prepare you and that’s the purpose of this book. The fact is there are many possible gains from the market, but there are also just as many losses. These tips will not guarantee you a winning trade every time, but by following our advice, you will keep your losses to a minimum.

Seen bursts...

Holy Gospel of Jesus Christ

Holy Gospel of Jesus Christ according to Saint Luke 5:1-11.

While the crowd was pressing in on Jesus and listening to the word of God, he was standing by the Lake of Gennesaret.  He saw two boats there alongside the lake; the fishermen had disembarked and were washing their nets. 

Getting into one of the boats, the one belonging to Simon, he asked him to put out a short distance from the shore. Then he sat down and taught the crowds from the boat. 

After he had finished speaking, he said to Simon, "Put out into deep water and lower your nets for a catch." 

Simon said in reply, "Master, we have worked hard all night and have caught nothing, but at your command I will lower the nets." 

When they had done this, they caught a great number of fish and their nets were tearing. 

They signaled to their partners in the other boat to come to help them. They came and filled both boats so that they were in danger of sinking. When Simon Peter saw this, he fell at the knees of Jesus and said, "Depart from me, Lord, for I am a sinful man." 

For astonishment at the catch of fish they had made seized him and all those with him, and likewise James and John, the sons of Zebedee, who were partners of Simon. Jesus said to Simon, "Do not be afraid; from now on you will be catching men." 

When they brought their boats to the shore, they left everything and followed him.