Trade like A Stock Market Wizard: How to achieve super performance in stocks in any market by Cassandra Nauvall

Chapter 1: Understanding Trade
 Trade is a basic economic term, including the purchase and sale of goods
 and services, the price paid to the seller by the buyer, or the exchange of
 goods or services between the parties. Trade may take place among
 producers and consumers within an economy. International trade allows
 countries to develop markets that otherwise would not have been open to
 them for both goods and services. This is why an American customer can
 choose between a Japanese, German, or American vehicle. As a result of
 foreign trade, there is more competition in the industry and thus more
 affordable prices, taking the customer back home to a cheaper product.
 Trading in capital markets refers to the acquisition and sale of shares, such
 as the purchase of securities on the New York Stock Exchange floor
 (NYSE)
 How trade works
 Trade broadly refers to transactions ranging in scope from the exchange of
 baseball cards between collectors to international policies setting protocols
 for imports and exports between countries. Trading is facilitated by three
 main types of exchanges, regardless of the complexity of the transaction.
 Free trade between countries enables customers and nations to be open to
 goods and services that are not available in their own countries. On the
 international market, almost any kind of product can be found: food,
 clothing, spare parts, oil, jewelry, wine, stocks, currencies, and water.
 Services: tourism, finance, consultancy, and transportation are also traded.
 An export is a good or service that is sold on the world market, and an
 import is a product that is purchased on the world market. In a country's
 current account, imports and exports are compensated for in the balance of
 payments.
 In addition to growing productivity, international trade enables countries to
 engage in a global economy, promoting foreign direct investment (FDI)
 opportunities, which is the sum of money that individuals invest in foreign

companies and other properties. Thus, economies can, in principle, develop
 more effective and can become competitive economic participants more
 easily. For the receiving nation, FDI is a way of entering the country
 through foreign currency and expertise. This raises the level of employment
 and, in theory, contributes to increases in the gross domestic product. FDI
 provides market expansion and growth for the investor, implying higher
 sales.
 A trade is a security exchange for "cash" in finance, usually a short-dated
 promise to pay in the currency of the nation where the 'exchange' is located:
 A financial instrument must be established by the State (which regulates it)
 and must be registered by the owner of the instrument with the State
 Regulator (who issues it). The owner, in this situation, is called: issuer of
 the financial instrument.
 The name of the person seeking the instrument is the claimant. Investments
 in a company are known as stocks. When you own a stock, you own a
 portion of the company from which the stock originated. For that reason,
 because you own a small part of the company, stocks are often referred to
 as' equity.' Depending on how the business is doing, stocks fluctuate in
 price. For instance, if Company A has just released an incredible new
 product that sells like crazy, the stock prices for Company A will increase.
 Alternatively, if Company A experiences declining revenue, their
 inventories would also possibly decline.
 Advantages : You can really make a lot of money if your stock is good and
 the company is flourishing. The cash is liquid as well. This implies that by
 selling your stock, you can get it at any time.
 Disadvantages : If a business is doing poorly, your stock is also doing so.
 Since stock is not diversified, it can be a misfortune for you (besides, you
 can easily decrease your risk by picking bigger, solid companies). It is good
 to assume that it is almost impossible to game the market, so the lay
 investor is not worth attempting. Such are the basics of what stocks are.

Trade like A Stock Market Wizard: How to achieve super performance in stocks in any market by Cassandra Nauvall