|
|
|
|
|
|
|
Too often, we see the experts make all of this stuff too complicated or too confusing or too boring. Our purpose is to tell you what you need to know to consistently make money in the market. No more, no less! |
|
|
|
|
|
|
|
|
Remember, we trade using a particular group of proven chart patterns. Our goal is to show you how to consistently profit using those same methods. With that goal in mind, we are going to cover only those areas that are needed to understand and profit from that type of trading. |
|
|
|
|
|
|
|
|
If there is an area or discipline or technique that we don't cover in this book, it is simply because you don't need it to prosper with the methods we use. |
|
|
|
|
|
|
|
|
Let's look at where stocks are traded in the United States. |
|
|
|
|
|
|
|
|
The New York Stock Exchange (NYSE) |
|
|
|
|
|
|
|
|
When most people think of stock trading, they have a vision of the New York Stock Exchange. They see the huge trading floor, the scurrying people, the endless scraps of paper, the shouts and hand signals among the traders, the energy, and the palpable chaos. What excitement! |
|
|
|
|
|
|
|
|
It's not as chaotic as it seems. In fact, the NYSE is quite well organized. Companies that meet stringent financial and operating requirements may be granted approval for their equity securities to be listed and traded on the NYSE. More than 3,000 companies are traded on NYSE. |
|
|
|
|
|
|
|
|
The NYSE is an ''auction market" where trading takes place between exchange members who act as agents for institutions or individual investors. Prices are determined by supply and demand, in an auction process, on the trading floor. This auction process is sometimes called "open outcry," where the traders shout and gesture to one another to indicate their buys and sells. |
|
|
|
|
|
|
|
|
Each stock that is listed on the NYSE is assigned to a "post" where a specialist oversees the auction process. All orders for that particular stock are brought to that one post to be "exposed" to the market so that all trading in that stock is centralized in one spot. |
|
|
|
|
|