Dec 03 2007
Online Trading Basics
Let me explain to you some of the basics of online share trading. The fist question that everyone trading on the market should ask himself is 'What drives the market?'. In most cases, a given market goes up or down depending on the determination of holders to sell. The main principle in economics, the one that is totally undeniable is the principle of Supply & Demand. When there are more buyers than sellers, prices will rise, and when the opposite is the case (more sellers than buyers) – prices fall. The price at which both buyer and seller agree to trade, also known as closing price, goes up and down during a trading day, relative to the supply and demand.