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Beyond “Limited Risk” and “Leverage” – How a Top Pro Initiates Trades with Favorable Risk/Reward Ratios
About Jared Levy
He is an Emmy award winning broadcaster and contributor to CNBC “Fast Money,” Fox Business, and Bloomberg TV.
Jared has published two highly acclaimed books on options trading, he’s a veteran market maker, and he is currently a Senior Equities Strategist for Zacks Investment Research. Jared is regularly quoted by Reuters, The Wall Street Journal, and Yahoo Finance, among others.
What is Trading?
Everybody is familiar with the term “trading”. Most of us have traded in our everyday life, although we may not even know that we have done so. Essentially, everything you buy in a store is trading money for the goods you want.
At tradimo you will learn how to trade the financial markets online – but exactly what is online trading?
The principles of trading
The term “trading” simply means “exchanging one item for another”. We usually understand this to be the exchanging of goods for money or in other words, simply buying something.
When we talk about trading in the financial markets, it is the same principle. Think about someone who trades shares. What they are actually doing is buying shares (or a small part) of a company. If the value of those shares increases, then they make money by selling them again at a higher price. This is trading. You buy something for one price and sell it again for another — hopefully at a higher price, thus making a profit and vice versa.