Success Trading for New Traders: What Does Bid and Ask Mean?

Written by Chuck Cox

Do you ever wonder exactly what’s going on inrepparttar trading pits after you’ve sent an order to purchase stock? You’ve no doubt seen market quotes either online or even inrepparttar 148594 newspaper. Have you noticed that there are always two sets of prices given? What exactly do those mean and where will my order get filled? Let’s discussrepparttar 148595 basics ofrepparttar 148596 two prices you see.

Let’s say you’re trading stocks. The first price (usuallyrepparttar 148597 one onrepparttar 148598 left) is called a “bid”. This isrepparttar 148599 price at whichrepparttar 148600 market is offering to buyrepparttar 148601 stock. If you sell your stock atrepparttar 148602 market, this isrepparttar 148603 price that you’ll get. The second price (usually located onrepparttar 148604 right) is calledrepparttar 148605 “ask”. This isrepparttar 148606 price at whichrepparttar 148607 market will sell yourepparttar 148608 stock. If you submit an open order to buy shares atrepparttar 148609 market, you will get them forrepparttar 148610 ask price. Another element that comes into play sometimes isrepparttar 148611 size ofrepparttar 148612 bid and ask. Usually, there’s an order size that comes withrepparttar 148613 bid and ask. If that size is exceeded thenrepparttar 148614 price will usually change – and generally, that small price change will move slightly against you since you're creating a demand for that stock.

The difference between the

Successful Trading – Taking Profits - Part 1

Written by Chuck Cox

So you’re started trading, you bought some positions with your online broker, you’ve set some reasonable stop-losses to protect your account and all of a sudden one of your positions move strongly in your favor – so what do you do now? This my friend, is probablyrepparttar hardest situation to deal with in tradingrepparttar 148593 market – believe it or not.

Do you take profits? Do you hold on for more profits? Do you take partial profits? There is no textbook answer to these questions as it depends on your trading objective. That’s why you need to determine your objective BEFORE you start trading. No matter what you do, there will be regrets if you trade long enough. If you decide to take profits, there will be times whenrepparttar 148594 market makes a huge move without you, if you decide to hold on for more profits, there will be times when you’ll loserepparttar 148595 profits you had. However,repparttar 148596 important thing is that you decide on your objective and stick to it no matter what happens.

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