How A Forex Or Stock Broker Can Help You Succeed

Submitted by: Gerald Mason

A Forex broker or Stock broker will be of great importance to you In every investor's life the "broker" is a figure of prime importance. It is through him that all securities transactions are handled; there is no way you can buy or sell stocks listed on any national exchange except through his services.

In the trade, he is known as a registered representative, a title that has now supplanted the old designation, "customer's man." He is a registered employee of a brokerage firm, preferably one which is a member of the New York Stock Exchange. He is not a broker as such, but is the liaison between you, the customer, and the firm's commission broker who executes orders on the exchange floor.

What He Does

The representative's job is to extend to investors all the services of his firm. He will, first of all, transmit your orders to buy or sell securities stocks or bonds, listed or unlisted (over-the-counter), domestic or foreign, in round lots, odd lots, or piecemeal through the Monthly Investment Plan. He will also buy or sell rights or warrants which, in simplest terms, are options to purchase a certain number of shares of a stock issue. He will arrange the purchase or sale of commodity futures grains, coffee, cotton, soybeans, whatever you are interested in.

He will place any type of order you specify: at the market, limit, stop. He will buy on margin or arrange a short sale.

He will be available for consultation on the merits of particular stocks or industrial groups, or for analysis of your entire portfolio. He will supply stock studies, newsletters, market analyses, and whatever other literature his firm issues. He will hold your securities for you in the firm's vault, collect your stock dividends or bond interest, and send you a periodic statement on any shares held for your ac¬count.

His fee: the standard commission you pay on the purchase or sale of securities. There are no other charges for his services (although you will pay interest, naturally, on money you borrow from him for a margin purchase).

What He Doesn't

Your representative will not and should not serve as a stock market tout or tipster. Unless you request him to, he will not volunteer advice on buying or selling. He will not choose for you between two stocks that seem equally attractive. He will not hustle you into the market and then sell you out; the fast turn-around is not his way of doing business.

What a Brokerage House Is Like

Brokerage houses are pretty much like offices everywhere, except for the presence of the fascinating paraphernalia of the market. The customers' room in the usual large brokerage house has a quotation board on one wall. The arrangement of items may vary, but basically they all offer the same data.

For each stock listed—and it is a pretty large board that shows much more than the leaders in any particular group— the quote board will indicate the present and past year's high and low, the previous day's opening, high, low, and closing prices, and the successive prices of the current day's sales.

There may also be a panel of commodity prices. Very likely there will be either a ticker machine or a projection of its tape on a screen which enlarges the figures sufficiently for them to be read across the room. There may also be a Dow-Jones ticker which taps out news, statistics, and whatever economic and financial information the extensive D-J organization may dig up.

Generally, chairs or benches are ranged in front of the quote board so that customers may take their ease while learning what the new day brings.

This is all for your convenience. Of course, you can get the same information simply by phoning your broker, but his office welcomes your visit.

What you do not see is your firm's research department, accounting department, and vault—though you can if you wish. The research department consists of a staff of securities analysts who study and report on the performance and prospects of various stocks. Many analysts hit the road frequently to examine companies firsthand.

Some specialize in oils, others in railroads or utilities. Much of their work is continuing study of one company after another, but they are also available for specific analyzes at a customer's request. (No one will do a special run-down on duPont to see whether you should buy 10 shares, however!)

The accounting department is, of course, responsible for keeping track of the thousands of transactions completed, and for maintaining records of each customer's position.

Many brokerage houses are also investment banking firms, prepared to share in underwriting new securities issued by companies seeking more capital. As will be explained in more detail further on, a company issuing stock does not sell directly to the public. It sells the entire issue to a syndicate of underwriters, which resells it at a small mark-up, or "spread," to the public.

In this case, no commission is charged because the broker's expenses and profit on the distribution are included in the premium you pay. (When 10.2 million common shares of Ford Motor Company were issued in 1956, the largest distribution in financial history, they were sold to a syndicate of more than 700 underwriters at $63 per share.

The price to the public was $64.50 per share or a spread of $1.50. As spreads go, this was very small—even though it meant a total of $15,300,000 to the syndicate.)

Brokerage houses may also "take a position" in a stock. This simply means that partners or officers, or the brokerage company itself, may follow their own advice and buy one stock or another. Since the subsequent performance of these stocks may depend on how many other people become interested in them, brokerage houses scrupulously report their holdings to the public.

As a customer, you can then decide whether Blank stock is a good buy because your smart broker has a piece, or whether his report on Blank is tinged with undue enthusiasm because he holds it.

If you are using a Forex broker he will be doing a similar job for you, but he will sell you the currency pairs you are interested in.

About the Author: Free Forex Software For You To Use: Download Free Forex Software http://www.greatpublications.com/forex.htm

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The Evolution of Stock Brokers with Online Trading

An online stock broker is an investor's means of buying and selling shares via the Internet, just like a regular stock broker, wherein an individual or a brokerage firm acts asandnbsp; link to the stock exchange. Are such services necessary? Is it, after all, not true thatandnbsp; anyone can engage in online trading today, and that it is possible to invest in stocks with own computer? The fact is, only a registered (SEBI) stock broker can buy and sell shares in the stock market. Such an individual is registered on one or many stock exchanges and is authorized to transact on behalf of others. Apart from that, an online stock broker is very valuable to investors who are not technically inclined and have no or little prior knowledge of stock trading. Such investors can use their own online stock trading accounts to obtain necessary information and place online trades at any time of the day. Others, however, still require a human interface - a real person who will place trades on their behalf.

An online stock brokerandiuml;'s (online service of stock broker) services definitely transcend the traditional format of trading in stocks personally or via the telephone. By using an online stock broker, the investor no longer faces the constraints of location and busy telephone lines. Information technology has made stock market software reliable means of trading in stock on the Internet, and an online stock broker uses this on his client's behalf. An online stock broker requires considerable working knowledge of the stock market to help investors trade in stocks. Though they are independent of established brokerage firms, they are still bound by the same SEBI regulations that govern offline as well as online stock firms. They have in-depth experience in dealing with actively traded commodities and stocks.

By using such a stock broker, one gains greater access and can also save money on stock trades. Because of this, there are now many investors in the stock market than there have ever been previously. There are now any number of investment choices available, and online brokers can leverage these by the power of the Internet coupled with their own expertise and experience. There can be occasional hiccups while using the services of one's online stock broker. For instance, the accelerated growth of online trading can cause busy servers at certain times of the day. This makes it difficult to log on to one's broker's website. This is not a serious limitation, and invariably applies only to the first and last thirty minutes of a stock market day. Even this limitation will become history as online trading matures. The most successful traders often have as many as four or five brokers, though a single reliable broker suffices for those who only trade occasionally.

 About the Author

Article Written By: conancare 

Requirements For Stock Broker License

Brokers know the complete understanding of the stock market and hold considerable experience in trading in stocks. Thus they are able to give advice and counsel their clients about their investments and carry out transactions at the stock market. 

However, there are certain prerequisites for becoming a certified stock broker at the stock exchange and carry out transactions as well. You need to hold a stockbroker license in order to trade at the stock exchange. Unless you hold this full broker license, you are not authorized to trade at the stock exchange. 

You do not need a degree for becoming a stock broker but most of the brokers do have a degree. But you need to pass the General Securities Registered Representatives Examination to obtain a stockbroker license. Initially you need to work with a firm for nearly four months or more to be eligible to give the exam. This minimum four months period is taken to be as an on-job training period for preparing for the exam. Apart from the General Securities Exam, certain states in United States may also require you to take an additional exam for Uniform Securities Agents State Law Examination. 

These two examinations prepare you for getting into the stock market and understand things like terminology, trading, legal aspects, etc. After you pass the exam, you are considered as a trainee. You need to get trained further and take classes and courses for another two years to further enhance your skills and understanding of the stock market. If you wish to stay ahead in the trade, then even after you obtain your license, you need to keep on updating yourself with the latest industry trends and market changes. This would make you the most successful stock broker in the market. 

It takes more than a simple stock broker license to become the best and reputable in the industry. You should necessarily possess the business acumen to stand out. You should have strong analytical skills, sharp memory and ability to interpret situations and circumstances. Moreover, it is not necessary that you need to essentially become a trader at the stock market after obtaining the license. You can also become business analyst, stock accountant, stock market analyst, etc. All you need to do is to find the best job for yourself that suits your personality. If you do not want to become a full service stock broker, you can also start your own online business and become a discount stock broker. There are many people who need stock brokers who can buy and sell stocks based on their instructions. 

There are numerous opportunities in the stock market after obtaining a stock broker license. All you need to do is to find the best job and climb the success of ladder that suits your personality the most.

Ayna Miah Ayna Miah

Ayna Miah is the author of the popular book "Stock Brokers: Who are they and what do they do". Now he wants to share his money-making... (show bio)

Stock Market Trading Styles - Scalping, Momentum Trading, Swing Trading And Trend Trading

Submitted by: Arkaitz Arteaga

There are a number of stock market trading styles that different kind of traders use. There is no best kind of style, but each is suited to a trader’s needs and situation. The following are a few of the styles that are common in the market. There are generally four primary stock market trading styles. These are swing trading, trend trading, momentum trading and scalping.

Choosing which style you wish to use depends on your situation. An investor’s time frame is the main aspect to look at when deciding which style is best for them. The correct pairing of trading style and pairing will ensure you are profitable in your efforts in the stock market. This ranges from the aggressive day traders to the conservative long-term-investors.

Scalping

Scalping are trades that are done (bought and sold) during a very short period of time. This can mean that a buy and sell in just a matter of minutes. Each trade makes very small margins but a trader generally would make many transactions in a day. Scalpers, usually aim for high volume stocks which are liquid. They try to buy on daily lows and sell immediately when the stock goes up. It is also a good method for investors who do not have a lot of capital and reuse their capital n every trade.

Momentum Trading

Momentum trading is when a trader sees a stock price picking up and joins it. The investor will take a short or long position in the stock anticipating that the momentum of the stock will continue. This is generally how bubbles grow, due to many traders jumping onto an accelerating stock. Investing period for momentum trading is around a day.

Swing Trading

The general time frame for swing trading is one to four days. This is most common among mom and dad investors. Stocks are often chosen on the basis of technical analysis. Swing traders generally have the advantage of not having too much competition form major traders. Technical analysis I used to looked for indicators of short term price movements. Swing traders rarely do any fundamental analysis as they are looking for short term fluctuations. The majority of their decisions are based on price trends and patterns.

Trend Trading

The time frame for trend traders is around a month. This looks at a securities’ long-term momentum direction. As investors are holding the stock for longer there is a greater deal of risk involved. It is wise for trend traders to do fundamental and technical analysis on the stock. The main indicators that trend traders look for are higher highs. This indicates that a stock is trending upward.

It is very important for a trader to choose the correct style of trading depending on their time frame. Each requires a totally different kind of analysis and each style of trader will have a different set of securities in their portfolio. There are risks associated with all styles with Trend Trading being the riskiest and Scalping being the safest.

About the Author: Arkaitz Arteaga - Market Stock I have a degree in Computer Systems Engineering. I've been working in the world of forex trading and stock market investing. I also have been building a variety of websites for the last 3 years. Visit our website if you want more information about stock market quotes, forex market, day trading...

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Day Trading, Swing Trading, Or Long-Term Trading - How Do You Choose To Profit?

Submitted by: Reginald T. Hobbss

There are many different ways to profit in todays exciting stock market. Long term investing in the stock market is a good option for those who put their trust in companies that are reliable and are continuing to grow. This can yield excellent results for investors and has long been the norm in stock investing. This is not the only way to profit from today's vibrant market as there are many different trading opportunities available.

Short-term traders can also find investment opportunities in the market. Market prices can change rapidly when traders get nervous and sell their stocks or go into a buying frenzy. This type of trader psychology can make stock prices fall quickly, and sometimes rise rapidly. This may happen even when the fundamental financial numbers don’t reflect this.

Why do traders get nervous about their stocks? It could be as simple as a rumor, or more reliable resources like news reports and government concerns about the economy. This could cause an investor to think that a company will find financial trouble or increase in value. If a stock goes up or down, some traders will dive into the stock and cause the price per stock to rise quickly. The market will once again fall back into place, but quick-witted. short-term traders are smart to watch the market and take advantage of price changes that may offer a profit.

Position Traders - Of the three styles of trading, position trading has the longest term of trading. Position trading stocks may be kept for a long time as compared with day trading and others short-term stock trading methods. These traders will choose to hold on to their stocks for months to several years. Position traders will wait for a fundamental change in the financial reports, industry analysis, or stock value before they consider selling their stock. Position trading requires little time from the investor. The stock holder will simply check the market reports daily to plan their trading strategies. This is great for the person who is just looking to make a little income on the side. The investor may work a half hour a day after their regular day of work.

Swing Traders - A swing trader is an trader who generally holds stock for a short period of time, typically from one to five days. A swing trader looks to jump on market swings. This technique of trading will require a lot of time, but also can often yield sizeable return on investment. They will usually research stocks and plan investments for several hours a day. Swing traders look for trends in the market to help map out their opportunities. They use intraday and daily charts to predict how their stock may move.

Day Traders - For those who enjoy taking risks and like fast-paced trading action, day trading is a perfect way to play the market. Those who are educated day traders have learned how to decrease their risk and maximize potential profit. A day trader is someone who buys and sells stocks very quickly. The stocks could be bought and sold for a few minutes or a few hours, but always held on to for less than a day. Day traders frequently analyze data on the tick, minute, and hourly levels. This is not the place for an emotional trader. Because this type of trade requires so much time, it is only recommended for someone who wants to do this full-time.

About the Author: Discover the best Stock Trading Game info, tricks, and methods at Effective Stock Trading. Get the inside scoop with our free stock trading ebook. Grab your free copy at http://www.EffectiveStockTrading.com today.

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