Stock trading Essay Example | Topics and Well Written Essays - 500 words

Stock trading - Essay Example Decrease in stock price is a risk which can be offset by getting a put choice that permits the stock to be sold at a particular price and within a certain time. When the price of the stock comes down, the value of the put alternative will raise. The option of stock analysis is resolute by the investors faith in the different prototypes for "how the stock market works". I bought 4,000 PCLN for a price of 82.92 each and paid 25.00 as commission totaling to an amount of 331,705.00 and then when the price of the stock increased to 87 I sold them. Thus I made a profit of 16,270. Similarly I have made profit on GOOG and PBR stocks. This competition has taught me to be careful in what I do. I have learnt some of the technical methods which are useful when trading in stocks and shares. The most important aspect which I came to know is the importance of time frame for the trading to take place. Time frames also teach the alternative of how to get out of a trade. Apart from this I knew that I will have to always keep an eye on the risk factors of trading also. Also I knew that a simple stock trading strategy will help to keep my sanity. Simple trading procedure helped me to carry out my trading strategy efficiently and on a timely basis. The trading competition has also taught me about a new approach to manage my own emotions as a trade. I have also understood how to benefit from the crowd psychology of markets. The three Ms of stock trading also plays a crucial part in the stock market. By three Ms it means Mind, Method and Money. All the three Ms have to be in unison and this is a simple trading strategy which I have learnt from this