Before electronic trading of stocks, if someone wanted to trade stocks, they needed to call their stock broker to place their order, who would then route the order through a specialist on the floor of the exchange. The specialist would match the buyer with a seller and write up a physical ticket that would transfer the stock and send that confirmation back to both brokers. Much has changed since 1975 when the SEC (Securities and Exchange Commission) opened up the stock markets to electronic trading and discount brokers. This change drastically reduced commission costs and provided better access and information for day trading stocks thus making short term trading much more profitable.
The most common type of trading is buying a stock, waiting for its value to increase, and then selling the stock for a profit. Day traders also want to make a profit when a stock's value is decreasing by first selling a stock and waiting for it to decrease before buying the stock back at a lower price, and then buy the stock back at a lower price (known as shorting a stock).
Trend Trading is a popular strategy where stock traders identify the direction or trend of the stock. This type of trading uses support and resistance lines know as trading channels. When a trend is broken the trader will exit the trade when the trading channel is broken.
Swing Trading is similar strategy for day trading stocks based on oscillations between high pivot points and low pivot points, or in other words, between periods of optimism and pessimism using technical analysis trading using common indicators such as Stochastic and Relative Strength Index. Electronic Trading of stocks is done using computer algorithms to automatically generate orders to buy and sell without any human intervention.
Electronic trading now accounts for over 50% of stock market investing in stocks and is growing rapidly. The reason for this rapid growth is simple – technology has allowed electronic traders access to smaller and smaller data intervals to make excessive returns. Profit potential is huge and barriers of entry are getting lower. Level 3 Data offers immediate access to tick data summarized as Buying and Selling Pressure without the complications of handling tick trading data.
Better Information - Better Trades – Better Profits
Stock market trading can be very risky but can also provide you with excessive gains in a very short time. So if you want to make good money, you have to have the best information and the best trading tools available.
Level 3 Data is a well-known company in the world providing Buying and Selling Pressure for Stocks.The stock market graph of Buying and Selling Pressure provides the individual investor the competitive edge needed for day trading stocks for better profits. Our stock trading channels identify the direction of the stock price in real-time using our easy-to-use stock market charts. Trade with the highest level of data- Buying and Selling Pressure – trade with Level 3 Data today! Posted by Forex articles and reviews online.
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