Stock trading

Ondej Hank

Contents

Stock exchange
Provides services for stock brokers and traders Roles
Rasing capital for businesses Corporate governance Oportunites for small investors Barometer of economy

New York Stock Exchange

(14 billions) Industry, transportation, finance

NASDAQ Stock Exchange

(4 billions) High tech sector

London Stock Exchange

(3 billions)

Tokyo Stock Exchange

(3 billions)

Derivates
Contract between two parties that specifies conditions under
which payments are to be made between the parties
Types
Commodities (class of goods supplied without qualitative differentiation across a market) Stocks Bonds Currencies

The players
Broker - commissions

Individual stock trader Right stock picks

Market maker Bid /ask spreak

Bid/ ask spread?

Market makers are willing to sell a stock to the trader at the bid price

They will offer to buy back your stock at the ask price The spread is the difference between bid/ask

Chart elements
OHLC format (open, high, low, cloce) Open - the stock price at the beginning hours Close - the stock price at the end hours

Various timeframes seconds, minutes, days

Types of trading
Short term
Day trading ( from seconds to market close) Swing trading (from days to 3 months)

Log term 3 months and more Fundamental and technical

Technical trader

Fundamental trader

Technical trader trades from the charts i.e. price activity Technical trader makes full use of chart patterns and indicators

A fundamental traders trades based on companys earnings and products, world economical stats, income statements, usually for the long term.