Stock Trading Strategies

BetterTrades introduces students to stocks that trade on the major exchanges, such as the New York Stock Exchange and the NASDAQ. The NYSE trades for the most part in the traditional pit trading fashion, while business on the NASDAQ is all generated electronically.

Buying stock is a simple process. You identify a company that you feel good about and purchase a piece of the company by buying stock. Companies sell stock to generate capital. When companies perform well and are consistently profitable, the value of their stock generally increases.

Just tell your broker what stock you want and how many shares you want to buy, or input the information in the computer to send to your online broker. You can buy as many shares as you like and can trade on margin if you are looking to leverage your position.

While most of Freddie Rick's system involves trading options, strategies that involve the sale and purchase of stocks are discussed as well. The opposite position of going long is Short selling where the investor profits if the price declines. Before executing any trades, investors must determine which direction they think the asset is going to trade. One technique traders use is candlestick charting, which we can use to evaluate a security before trading it.

Short Selling | Candlestick Charting