Chapter 8
The Scoop on Stocks and Other Equities
In This Chapter
• Stocks are very popular with active traders
• Developing or purchasing your trading system
• Options allow sophisticated, highly leveraged trades
• Exchange-traded funds open new opportunities
Stocks are the weapon of choice for many active traders. They have all the characteristics that active traders need whether for short-term, swing, or position trading. Options on stocks allow traders to use huge amounts of leverage to control blocks of stock that the trader has the right, but not the obligation, to buy or sell. Exchange-traded funds (ETFs) let traders buy or sell market indexes, industry segments, or market segments. In this chapter, we’ll examine stocks, options, and ETFs. ...

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