April 10, 2017
In today’s day and age, the term “stocks” is thrown around pretty loosely. But what exactly are stocks and why do they help you earn money if you make the right moves. There are many stock trading strategies as well to help earn profits or help minimizing loses as well.
Stocks are basically a part ownership in a public company that can give u a percentage of assets and earnings depending on how well the stock does. You can right a call for stocks that basically means you will sell a stock at a specific price when and if it hits that price at a specific time down the road.
They are usually used against a long stock. Long stocks are stocks that you have own in your possession and short stocks generally mean stocks that you have sold. Short selling is another useful strategy in which a buyer gets stocks loaned from a broker in most cases.
After a certain time period, the buyer must cover and buy the amount of stocks shares loaned and give it back to the broker. If the price gets lowered, this allows the buyer to make a profit based on the price difference of it first being loaned and being covered later.
These strategies are part of the Stock Analysis and are key components to various Algorithmic trading and technical analysis as well. These trading strategies will help you make advanced moves and learn more about the expanded world of the stock market.