stockbroker at Stock Research

Who speculates at the stock exchange? What does the person who earns money at the stock exchange look like? I have asked this question to my friends. Here is the generalized portrait of the average trader.
Speculation at a stock exchange seems simple business. But this simplicity is deceptive. Having succeeded firstly, the beginner already considers itself as the invincible expert, operates without control - and melted out.
To stock jobbing come different ways, sometimes they are logical, but more often - on the contrary. The stock exchange is a chance at one stroke to receive a great lot of money. And money for many is freedom though very few people know that with it to do further. Having mastered exchange business, you become independent: live, where you want, work, where it is pleasant and without chiefs. The market is a delightful intellectual employment - chess, poker and a crossword puzzle all at once.
Stock jobbing attracts courageous and frightens off those who prefers a titmouse in a hand. The inhabitant lives steadily: breakfast, work, a lunch break; in the evening - the house, a supper with a bottle of beer, the TV - and to sleep. It is possible to earn additionally and he entrusts money to the banker on the savings. And at the stockbroker any hour is working, and it subjects the capitals to risk. The stockbroker descends with well-trodden track of the present and goes in uncertainty of the future. Desire to realize itself completely, your abilities, is congenital and also it is inherent in much. It also pushes people to measure swords at a stock exchange. Besides, speculating, it is possible to receive both sports pleasure, and considerable profit.
Good stockbrokers are usually hardworking and sharp-witted. They respond to all new. It is strangely enough that their purpose is not money. Their purpose is able for speculating. Then also money will be - as by itself understood. Succeeding stockbrokers tirelessly perfect the skill. To reach personal perfection for them it is more important than any money.
Stockbrokers from among those who are out of tune with itself, quite often search in stock jobbing for an outlet for the inconsistent desires. But if you do not know, to what you aspire, it can turn out as in an introduction: shoot oneself in the foot.
The layman overestimating the force, trying to win, by all means, should go on the big risk. Means, at the slightest turns of a stock exchange against it will take off from speculation.
The succeeding stockbroker is the realist. It realizes, that has, and that not. It clearly sees, that occurs, and knows how to act otherwise. It soberly estimates an exchange situation and, constraining emotions, builds practicable plans. Illusions are not for the stockbroker-professional. The layman, having done some unsuccessful operations and having lost is a little money, panics. Its representations about a stock exchange become, the further, the more mutilate. At losers it is a lot of imaginations about the purchase, sale and a choice of transactions. They behave as children who are afraid to pass on a cemetery or to glance at night under a bed, because the eyes of fear see danger everywhere. The stock exchange with its uncertainty excites freak of the imagination. From the losers, suffering a myth about exchange knowledge, it is possible to hear: “I have lost, because did not know secrets of speculation”. Many losers think, as if to succeeding stockbrokers any special secrets are known. These people do not know that to play at a stock exchange not and it is odd. It is much more complex to delete, for example, an appendix, to build the bridge or to assort action of proceeding. Good stockbrokers usually people sharp, but all is far not - intellectuals. Many did not study in colleges, and the some people even have thrown school.
Stock jobbing often involves the succeeded businessmen and people of liberal professions. Here a portrait of the average client of broker firm: it is forty-year married the man with higher education. Many have also the firm.
So why do these people who have succeeded in the business lose at a stock exchange? The matter is that there the keystone to success is covered not in special knowledge, not in any secrets and, certainly, not in formation. For success in work at a stock exchange the clear practical mind, the certain share of boldness, constant self-checking and aspiration to self-improvement are simply necessary.
             I don’t answer to the description absolutely, but I would like to try to speculate at the stock market, and (I hope) I will succeed.

Trading stock begins with an investor placing an order, which is informing the stockbroker as to what stock and how much he wants the broker to buy or sell. An order to buy or sell stock at the best possible price at the present time is called a market order. The broker conveys the order to an exchange member on the trading floor, who attempts to get a better price for the buyer by offering a little less. For example, the broker might offer 47 1/8 ($47.12.5) for the stock with a current price of 47 1/4 and see if someone will sell at this price. If the investor were selling, the broker would attempt to get a slightly higher price by offer
say, 47 3/8.
The final sale will then be electronically relayed to the bro¬ker who placed the order.
The investor might also place a limit order, which specifies the highest or lowest price at which the broker may buy or sell. If the investor can’t be accommodated immediately, the broker places the order in a sales book and then tries again in order of priority. If an investor wants to keep the order on the books he can issue an open order that instructs the broker to leave the order on the books until it is executed or canceled.
Sometimes the investor might give a discretionary order, which allows the broker to exercise judgment in making money. The investor leaves it up to the broker to decide when and at what price to buy or sell.
An odd lot is any number of shares less than 100. One hun¬dred shares comprise a round lot. Brokers usually trade shares in lots, odd lots being combined with a series of other small orders to forma round lot. A purchase of 10,000 shares is some¬times called a block sale.
In addition to the price of the stock, the investor pays the broker a commission for buying or selling the securities.
Sometimes investors pay less than the full amount when they buy stock. This is called margin trading. The FRS determines the minimum margin required. In recent years the stock margin has been approximately 50 percent. Fearing that the investor might sell the stock and abscond with the funds, the broker keeps stock certificates of margin accounts at the brokerage as collat¬eral. If the stocks were to plummet, the broker would call the investor and request that he put up more money or have the stock sold.
Active buyers of stock are called bulls. They believe that the prices of stocks are going to rise. During the mid 1980s, the US witnessed a very long bull market. At the 1987 crash even bulls became bears. A bear is an investor who makes a profit when the prices are going to fall. Selling short is a high-risk strategy which bears use in order to do that. They sell borrowed stock in the hope of later buying it on the open market at a lower price. Options are contracts that allow an investor to either buy or sell a security at a predetermined price within a certain time. Depending on the investor’s expectations, he may buy a put option or a call option. A put option grants the owner the right to sell a security. Believing that the price of certain shares will drop over some period of time an investor might buy an option and benefit from selling the shares at the option price to the person who sold the options. A call option grants its owner the right to buy a certain amount of stock at a predetermined price within a fixed period of time.

To my mind it would be necessary to know a little bit more about securities markets, than I know now. As I have already said securities are bought and sold at two types of securities mar¬kets: primary markets, which issue new securities, and second¬ary markets, where previously issued securities are bought and sold. If a company wants to sell a new issue of stock or bonds it usually negotiates with an investment bank, or underwriter, who sells the securities for it. The underwriter buys the securities from the corporation and resells then to individual investors through the secondary market.
Organized security exchanges have developed to make the buying and selling of securities easier. The securities exchanges consist of the individual investors, brokers, and intermediaries who deal in the purchase and sale of securities. Security exchanges do not buy or sell securities; they simply provide the location and services for the brokers who buy and sell.
A stockbroker handles stock transactions. A stockbro¬ker buys and sells securities for clients. Stockbrokers act on the clients’ orders. Stockbrokers receive a fee and are associated with a brokerage house. To trade on the exchange, a “seat” must be purchased. A seat is a membership. The members represent stockbrokers. When a stockbroker calls in an order to sell, the member representing that broker looks for a buyer at the price requested. When a broker calls in an order to buy, the exchange member looks for a buyer at the price offered.
The largest and best-known exchange in the USA is the New York Stock Exchange (NYSE) also called the “Big Board”. There are 1,300 seats on the NYSE and approximately 2,000 stocks and 3,400 bonds are traded daily. In. order to be listed on the NYSE, a firm has to meet the following requirements:
1. Pretax earnings of at least $2.5 million in the previous year.
2. Tangible assets of at least $16 million
3. At least 1 million shares of stock publicly held, and others.
The second largest stock exchange in the USA is the Ameri¬can Stock Exchange (AMEX). It is located in Manhattan and has about 500 full members and 400 associate members. AMEX oper¬ates in much the same way as NYSE, but smaller companies may qualify for listing.
There are also regional stock exchanges that serve regional markets.
The over the counter market (OTC) sells and buys unlisted securities outside of the organized securities exchanges. About 5,000 brokers of OTC are scattered all over the country. They trade unlisted stocks and bonds by phone and keep in contact with each other.
The prices of the securities are established by supply and demand. Electronic screens in the offices of the brokerage firms display OTC transactions, so brokers continually keep cus¬tomers up to date on the latest prices.
Options are traded on the major stock exchanges, but also on a special market for options, the Chicago Bond Options Ex¬change (СВОЕ).

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