The Trading Floor

Submitted by admin on Mon, 02/20/2017 - 06:28

When you are a stock market player in the real world physically, it is at the trading floor where you go to observe the market movement.  Before TV and monitors were on the walls, it was blackboards or whiteboards that hung on walls.  There is a person who wears a headphone updates the trade alert prices for selling and buying.  The boards also show previous trading prices and closing price.  Based on those figures, traders decide which of their holdings they would keep or sell and which they would buy.

What happens on the floor is almost like swing trade alerts because the immediate decisions that will prompt you to buy or sell.  Substantial change in prices is an alert for an investor and the swing side of it is to sell for gains what was bought at a lower price.

Company profile

In actual trading on the floor the company profile of listed companies do not really matter.  What matters most is if the selling price is way below the previous day’s close with speculation that it will go up with a day or couple of days.  Sometimes personnel of the trading floor can say if a share price has reached its lowest.  That can alert investors to start buying that will the price go up.  If the price goes up close to previous highs, they can sell within the day for profit.

Players can keep shares bought at a low price for more than a day if they anticipate that prices can go much higher.  It will not hurt them if does not go any higher as long as there will be no significant price drop in the coming days.

Good companies

Wise investors are on the lookout for good companies’ share prices that reach low levels.  They buy them because they know it will not be for long before the prices start going up.  There is less risk in this type of investing.