Chapter 2
Introducing the Financial Markets
IN THIS CHAPTER
Understanding the magic and mechanics of the market
Opening an account and placing a trade
Grasping how day trading fits into the markets
Comprehending the fundamental powers of risk and return
Distinguishing trading from investing and gambling
Identifying the special risks of day trading
The market is the aggregation of all the traders you’ll face in a given day. They’re placing orders to buy and sell for every possible rational or irrational reason you can imagine. The financial markets are more or less instantaneous these days. They are global, and they operate almost continuously.
Over centuries — yes, centuries — institutions and regulations have been established to keep the markets from disintegrating into chaos. Markets operate more or less around the globe, around the clock, so that money moves and trades clear even ...
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