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Folks; let us continue our STOCKS 101 Thread. Stock Market is a funny place with it’s own Lingo. As the song says, “If you gonna play in Texas, you got to have a fiddle in the band”. To be a successful investor\\trader\\speculator, you will have to understand the Lingo.
To avoid sounding like a JJC, note these terms. You will need them as you dig deeper into investing.
1. BID: The Amount you are willing to pay for a STOCK.
2. ASK: The Price you Sell is he Stock.
3. SPREAD: The different between the BID and the ASK.
1. BID: The Amount you are willing to pay for a STOCK.
2. ASK: The Price you Sell is he Stock.
3. SPREAD: The different between the BID and the ASK.
4: MARKET MAKER. The person or Company that actually sells you the Stock.
5. STOCK Exchange. A “supermarket” that sells and buys only Stocks and financial instruments. .
6. Financial Instruments: Stocks, Bonds, ETFs, Mutual Funds, etc.
7. Equities. financial instruments
5. STOCK Exchange. A “supermarket” that sells and buys only Stocks and financial instruments. .
6. Financial Instruments: Stocks, Bonds, ETFs, Mutual Funds, etc.
7. Equities. financial instruments
8. Derivatives: A complex aggregation of RISKS\\ASSETS packaged and sold as an in investment.
9. Hedge Fund: Funds that caters to Millionaires/billionaires. Many of these have minimum asset requirements that starts from $1 MILLION and up. If you are reading this, probably ...
9. Hedge Fund: Funds that caters to Millionaires/billionaires. Many of these have minimum asset requirements that starts from $1 MILLION and up. If you are reading this, probably ...
So, you will hear someone say something like this. “I am LONG NETFLIX and SHORT APPLE”.
What they are saying; “I BOUGHT and OWN some Netflix stocks. However, I SOLD some NETFLIX Stocks THAT I DON’T OWN”.
What they are saying; “I BOUGHT and OWN some Netflix stocks. However, I SOLD some NETFLIX Stocks THAT I DON’T OWN”.
YES, you DON’T have to OWN a STOCK to Sell it. You can SELL a STOCK you DON’T own or EVEN PLAN TO OWN! It is called SELLING A STOCK SHORT! Very risky, BUT VERY PROFITABLE. We will talk more about this strategy in a different Thread
PLACING A Trade. Generally, most Stock Exchanges operate as an AUCTION. What this means is that, you BID on the Price as we already talked about. BUT YOU CAN also set your OWN price you want to pay.
1. When you place an Order to BUY or SELL, here are your Choices.
1. When you place an Order to BUY or SELL, here are your Choices.
MARKET PRICE: The Highest AVAILABLE price.
2. LIMIT PRICE: The Price you want to Pay to BUY or SELL
STOP LIMIT: The price you want to either STOP in either direction of the trade, SELL or BUY.
TRAILING STOP: A price you enter at which your wish is done.
You can enter it in % or..
2. LIMIT PRICE: The Price you want to Pay to BUY or SELL
STOP LIMIT: The price you want to either STOP in either direction of the trade, SELL or BUY.
TRAILING STOP: A price you enter at which your wish is done.
You can enter it in % or..
To be continued! Happy investing
