| Stock and stock trading are still virtually unknown to | | | | then informs the floor clerk on the exchange about |
| a lot of people. Just seeing it in the news or hearing it | | | | the order. The floor clerk then informs their floor |
| somewhere makes it seem too difficult for the | | | | trader regarding the order and the latter then in turn |
| average Joe to understand. For most of us, all we | | | | searches for another floor trader that is selling the |
| see are companies, charts, lines and numbers that | | | | particular shares of stock being ordered. The two |
| change from time to time and a lot of people | | | | meet on a price and execute the deal. The |
| creating a ruckus in a busy room. | | | | information of the deal goes back up the line and the |
| What exactly is stock trading? It simply means the | | | | broker then informs the client of the final price. This |
| buying and selling of shares of stock. Shares of stock | | | | is of course only a simple trade as there are more |
| correspond to the interest of a person in a particular | | | | complicated trades requiring a more tedious process. |
| corporation. Each share is equivalent to a | | | | The electronic market on the other hand makes use |
| corresponding monetary value. These shares can be | | | | of computer networks to set up buyers and sellers |
| sold or otherwise disposed by a shareholder to | | | | instead of personal brokers. While this system does |
| another person except when it is not allowed by law | | | | not have the same charm of the images of the |
| or by the by-laws of the corporation. This has | | | | exchange floor, it is very effective and fast. Many |
| resulted to the establishment of stock exchanges. | | | | large traders have a preference for this method of |
| One does not need to have knowledge of all the | | | | trading. However, a broker is still necessary for |
| technical intricacies of how to buy and sell stocks. | | | | handling the trades since some individuals don't have |
| Nevertheless, it is necessary to have a basic | | | | contact to the electronic markets. The broker gains |
| appreciation of how the markets work. There are | | | | access to the exchange network and the system |
| two fundamental ways to make a trade: either on | | | | looks for a buyer or seller depending on the order. |
| the exchange floor or electronically. There is a great | | | | Stock trading is not a job for everyone. It comes |
| insistence to move the trading off the trading floors | | | | with a lot of hardships as well as a certain amount of |
| and to the networks but this is not actually being | | | | expenses. It is not a job for the newbie who just |
| accepted by many. Most markets, deal with stocks | | | | wants to earn some easy money. It also entails a |
| electronically. | | | | certain degree of accountability and some |
| Stock trading on the exchange floor is probably the | | | | requirements which may be imposed by the |
| method people are most familiar with as we see it in | | | | government. There are also taxes and other fees |
| movies and on the television. There is this image of a | | | | and expenses to worry about. |
| lot of people in suits making different gestures, | | | | On the other hand, it can also be a very rewarding |
| shouting and constantly watching the monitors. A | | | | and productive vocation for the successful stock |
| simple trade on the exchange floor starts with the | | | | trader. While many have been unsuccessful, there are |
| client asking the broker to buy a particular number of | | | | some who have made a lot of money out of it. |
| shares at the stock market. | | | | Suffice to say, success in this kind of job needs a lot |
| Afterwards, the order department of the broker | | | | of perseverance and hard work. |