Chapter 12
Savvy Stock Sales
IN THIS CHAPTER
Understanding various types of orders
Looking at long and short stocks, chips, caps, and sectors
Dealing with a bull or a bear (market, that is)
Seeing how stock indices work
Figuring out what a stock is worth
It’s no surprise that the stock market is so often compared to gambling, when so many who participate merely think they can beat the odds. They buy or sell looking only at the ever-changing probability of getting a win, rather than at the underlying value of the transactions. This madness, even among those who claim to be rational, is typically what drives the short-run movements in the market. This game of chance isn't for everyone, and there's no reason to play it when the long-run valuations are much more stable, predictable, and reasonably free of all the complicated nonsense that traders spend their time on.
Exchanging Stocks
Exchanges take place by different methods that facilitate the purchase and sale of equities between ...
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