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Thursday, July 31, 2008

Market around us

They are many market around us .Future,commodity,Forex,Stock ,and many other more,

but now let talk more about Stock market for now

Share/equity/stock that all mean the same things,these mean that u buy a ownership of the listed company.

A slight introduction for option for now,as i am a trader that uses option as a leverage tools Option is a contract of controlling 100 share with limited time
With option u are able to control 100 shares which are a lot cheaper than normal 100 share ,about 1/4 the price compare to 100 share.

Differences between trader and investor

The main different between a trader and a investor is the Time
Trader usually take on trade for 1 year or below whereas
Investor take on trade for 1 year and above

Investor usually go bullish on the trade because they are looking at very long term.
because Dow Jones index has a history that if U buy at any part of time for 10years, U will still make money.
however for trader is to take on a faster trade,both bullish and bearish.
Example Dow Jone may drop for a month before it go up, trader will pick on this chance to catch all type of wave.
Trader may take on trade at these following
1)momentum trade-a few month of holding open position
2)Swing trade - A few week of holding open position
3)Day trade -A few hours of holding open position
4)Scalping - A few minute of holding open position