How To Swing Trade

Archive for November, 2009

i heard ameritrade is good…are there any suggestions?

Most online options brokers have virtual trading platforms these days. Another one to look at is optionsxpress.

Below is a list of online brokers. Most of them have virtual trading function as well.

I HAVE NOT COME ACROSS AN ARTICLE WHICH DEFINES AND EXPLAINS PRICE ACTION.

I’m not too sure what you mean but here I go…

Price action in forex is basically governed by supply and demand theory – if there is demand for the currency it goes up. If there isn’t price goes down. If there is too much supply, currency goes down and if there isn’t enough, currency goes up. That’s the simplest explanation – you might want to search around for supply and demand theory.

Most forex systems are based on price action because most traders use charts – technical analysis which depends on price action.

I use Sharebuilder, and right now for JMBAU, the quote is $2.83 and the "ask" is $6.00 x 200. If I were to purchase shares at this quote using a market order, would I be paying $2.83/share or $6.00/share?

First: how bid/ask works has no difference between online and talking to a broker on the phone.

You buy from a seller at his "asking" price and you sell to a buyer at the price he is "bidding".

The quote consists of two parts: the bid and the ask. The quote is not $2.83; that is the last trade. It is for historical information only and of no interest to you.

What is of interest is 6.00×200 means that someone has 200 shares and wants $6.00 for them. That is what you might expect to pay for up to 200 shares. If you want more than that, who knows where the next higher offer is. (Actually, I do, because I have Level II quotes on my professional screen, but my license is for my use only, so I can’t post them here. Sorry) The other thing is that the bid is N/A which means that there is no bidder, i.e. nobody wants to buy this stock, so if you bought, who would you sell to if you changed your mind? If you just put in a market order to sell, some dealer might pick it up for literally pennies.

I invest in equities and think it might be interesting to trade commodities as well. I am less interested in FOREX for currencies but would like to take a look at other commodities.

Hope this list on the website would be useful….http://www.summaryworld.com/commodity-broker-directory.php

means were the number of shares i asked is more than what the company offers in listing volume or is it less than what company offers as minimum stake?

That means the volume that were traded were insufficient