TheI nsider’sG uidet oT radingt he World Stock Markets By Andrew Willis Octobe2r0 01 October2 001©C opyrightb yA ndrewW illis Alrli ghtrse served. This book, or parts therof, may not be reproduced or distributed in any form or by any means, without the prior written permission from the publisher or author. Disclaimer Thibso oiwksr ittefnot rhs eo lpeu rposgaaeus i dtteor adinagn d investitinshngte o mcakr keatsnshd o unlvbodiet e wioenrdt erprettaehsde onlym eanso fp rofitingo ra sag uaranteet op rofit. Paldebvaediptst asrhehteoa eadvt i deesdp,e csilWiaitetlnhbelke ys anmda rkeitn diceicssu rrenaotOsf c tobe1r72 ,0 01a,na drs eu bjectctoh ange at anytime thereafter. stnetn o fCeolbaT Disclaimer ................................ ................................ ................................ ... 4 Table of Contents ................................ ................................ ........................ 5 The Insider’s Guide to Trading the World Stock Markets .......................... 7 noitcudortnI ................................ ................................ ................................ ............... 7 erutcurt Stekra MyeK ................................ ................................ ................................ 9 NYSE ................................ ................................ ................................ ..................... 10 QADSAN ................................ ................................ ................................ ............... 12 lIeI vQeALDSAN ................................ ................................ ................................ .......... 12 snoitin i lfIe eIvQDeALDSAN ................................ ................................ ........................ 15 QA DnSaAeNporuE ................................ ................................ ............................... 18 LSE ................................ ................................ ................................ ........................ 18 g ngi n l.ikbsdcmvaoartGTS ................................ ................................ .................... 22 ksiR ................................ ................................ ................................ ........................ 23 ecnedifnoC ................................ ................................ ................................ ............. 25 ecneitaP ................................ ................................ ................................ .................. 26 seige tgan riytdaSaDrT ................................ ................................ ............................ 28 gn ipdlaarcTS ................................ ................................ ................................ ......... 28 g ngindiawrST ................................ ................................ ................................ ........ 32 gnidarT eroC ................................ ................................ ................................ ........... 36 gtn ri.godsnhavoSrLT ................................ ................................ ........................... 39 sis ytleaknrAaM ................................ ................................ ................................ ....... 42 lastinseymlaadnnAuF ................................ ................................ ............................. 42 lsaicsiynlhacneAT ................................ ................................ ................................ .. 43 e ngin liyndaOaDrT ................................ ................................ ................................ . 45 enilsneOcruoseR ................................ ................................ ................................ .... 45 se t biaeSiWdeM ................................ ................................ ................................ ............. 46 se tbgienSWidarT ................................ ................................ ................................ ........... 47 seniz aegnaiMlnO ................................ ................................ ................................ ........... 48 eniln OkcotsStekraM ................................ ................................ ............................. 49 e tbeiegSWnah ckxc Eok trwSoeYN ................................ ................................ .............. 49 egnah ckxcE ontaSciremA ................................ ................................ ............................... 53 e t biQeSAWDSAN ................................ ................................ ................................ ........ 55 et ib SeeWpor uQEADSAN ................................ ................................ ............................ 56 e t bieeSgWnah ckxcE ontoSd neohLT ................................ ................................ ............ 57 rehtOsecruoseR ................................ ................................ ................................ ...... 59 ss e sccrpicoigufTeStartS ................................ ................................ ........................ 62 srot atceikdrnaIM ................................ ................................ ................................ .... 63 xe d 0n r0Id o5r&oaPdnatS ................................ ................................ ............................. 64 0x0e 1dQnAIDSAN ................................ ................................ ................................ ....... 86 xed n0 I0E1STF ................................ ................................ ................................ .............. 90 slairts usd enwnIooDJ ................................ ................................ ................................ ..... 94 ygolon igmn rikedcTaortTS ................................ ................................ ..................... 96 7 eht gnTihdeaI rn sTot ieddiuGe sr’ stekraM kcotS dlroW Introduction gamfield onlmye mbers a longer no is markestt ock The e of stockbrokers playing the market. Like so many other industries, the Internet has changed the markeatn tdh wea wydeb o u sinesWsi .tt hh cel icobkafu ttont,h aev erage individual now has access to the same information and facts that only tekr anme hswy ae dhe tr ea.n oo gGsara e w yoeyatfvi repr eswrekorbkcots traders and specialists had the advantage of profiting from the ignorant public. Witht oday’st echnology,y ouh avet hes ameo pportunitiesa st he professionals at your fingertips. The difference, of course, is knowledge and experienwbchooewaift,irc h teh yh Hgoiirungar h s -ps.p aececdte oss informaptrioovnri,ed aiilnnq-gosaut stntnoidprladtmarhain eeyuadnts nsie g n g tprnPraeeodwriofaai enpeo rn aitlswegltoesn o is i.fz ot c titnhahno anegoty mactstodrthnaaeeccoydra oef i nmp ndptpg e r toef eslseivoaen lai-lnpl lya ying field. Torotodonehbaolxaeisykypp stto i ea ahferitce inhl e t eacnh nacadnet et e g pnn.mai eochhcctg i ount ehnoecdmghvaniu t Eratoydprlehnntoi aetbbo with the reality of experience, a good education could help prepare you and that’s pmotaashnrseyigetfirf sa haberT iecl ohntemes bpt ouhtorihokpsef.o se markebttuh,teaa rrljemesua a lossno tT tyst hi ishbepnei o as ssor . ke deng iost epdle hu odyio vesah e t ektsmaara thesesthvi tameohd anmehyweht started out. Bear in mind that these tips will not guarantee you a winning trade .muminim a ot sessol ruoy peek lliw uoy ,ecivda ruo gniwollof yb tub ,emit yreve ku.oc.stnevekcilc.www 8 Tbhboiebosgak wois aivni teschr vi graduallyand market stock the of ew miigntrttoaehwptsrearepm rosaeedf ntcold idiifeist pf vatasietrb cleal tefe ogries itnhfMsoeoouf rsir tmtnv ha diietuvan isad vtlv er ii ycs.es c,uao ennsdt, e nt tek rkac m oyf tro.sars es do Aa lyregatndi l esnfhtootsere t esnnheiotsucof teradmresed icaitotstewoesdn c trtibiehoaanfaen c es kr ebntecoge i nners jsutsatr btfaoaiontusnrdrtig a c gd wwretiharosodis th un h tateote er mediate InPd1oe0Sox0tr a’it&nsnh d cefal fioruusrdrldr F eietofsdhret e r rae ln ecvee,l . .x ek Qdc 0An od0DIetn1ShSaAtN maNtoiht noetwre B lelciWa ghiauytredytrsorina?e euastya , dk ii.sn g invoclovmpempeshaheo inTastpesyhvoilwmt aae tehootn i ytr’d o iis noc na.l ly graesmqibmttuWmiluroihitiigca ril snahdela gmiser,bnt c lgooi mnipgta. r ed mtpiohtunrDarrseanaet y dl ri aiue nnncqcdgkut .i k rneosiwt nlhdeoeudf sg ter y, diligence, the ability to absorb, decipher and react to the continuous tides of informatione ncumberedw itht hei nternalc onflictso fe motionalp ride,f ear, despair, greed, and loss. If the prospects of winning are still a challenge and appeal to you in spite of the risks, then by all means, read on. Begin the journey of your day trading experience. ku.oc.stnevekcilc.www 9 Key Market Structure The term “day trader” imogtptpaihrraenveeaarnde stldeesshle d ia s ot n closewdi thitnh sea mbeu sinesdsaW yh .i lteh imsa byte h cea sfeo mro sotuf s , thsaetorrchmeeoae a ut cl tdu aSllwlaltiosdyrnn ta atgg yadh e.c iar onn ug l d cosnetfvidtowecnarrhwrouyai icearlesdnloelea ,iteuk s no lstg d. StockYork New the arem arksetto ck the in fipelllaadyrsig negst tw o The e,g)nEaSh Y cdNnxn(oEai d tselseaeta rhiianfetctmooloioiasrttesuuaDAcANeS noitat omueQt s.y)SQADSAN( esehT owt stekram evah yrev .esunqoiintucnitsid YorNkewS itWnmrsal aetloreolocktc Snae k. tlt ea Udrt. gh ees itsN YSTEh e sgtTeaNtohnrYrceeeSaak Cr Etds ilra e tieldsysafl e.tseyc e tr udorr eidt ies, representinegs tablishecdo mpaniewsi tvhe rlya rgcea pitalizatioann cdo nsistent eacroInnnit nr gNtasAhs.stSet ehiD cesAlo Qan rdg setsmotac Utrk.hik ene t vhpoirllaogoaenhfhjetvado eeSmie ssrc.eillti t rti csnsg to c iymen p gaw niitehs less stability and security. Additionally, the NASDAQ Europe is available for market trading in Europe. T LoSnEhtldxeoeotc canhhskd( meati iLa nosenSrgc xgEkekc )e h ta nge in the United Kingdom (UK), and considered the most international exchange g nmiedtasry tsni e h.tdlrow t Isevr eesht elor sa eht y t)KgiAUnrLioKthUst(iuLA ovtelorti shseetpe ir nogce eanrbwsnsiuaemisdutlriett, rseenthh e s g ie n .te krr aal miomt i,e Ssh E eteS QchY dAitNEn DdSasSnLeA isNe uhEtST0F01 Index list. The LSE market is divided between the AIM market, which is specifically tailored to meeting the needs of growing businesses worldwide, and eht KRAMhcet tekram desived rof e hdtesab-lacig.osleoinnhacpemtoc ku.oc.stnevekcilc.www 10 NYSE saiuuamscpnieNtt iT ltYiosha So erEn -orienstyewsdhtai iencm h, specialist who is essentially an auctioneer represents the sale of a particular stock. Since all business conducted at the NYSE is open to full public view, the estabbmlysati cprwsoekothmce-hiomitwenpua a genly nii bscse attt wieoenn buyers and sellers. Specialists may represent more than one stock, but only one specialrcieaspntr esstestthniopoNhedttnecoe o slckt eyi l afl.io svtesr tsheee steoxcckh aantahtbsgbhlahihseuesveltitpbstyoe iofore, t tcitt y kcot e esr tbruaaeyttflrlaehraeelatraaiv inestinresdld dslr T i eayahqac geu te ii do intsy. acroen ductsemdo oteahninlvn yi ronmewnhtet irhneev estocrosn ceratnrosep priority. gmNeaaYSnrtrStekhteEoreerc icat aonkl dn sles ydi dleirsetde d securities since they represent some of the larger, more established companies. bSuuscichnha ehucpshagoilsiventoeseo sanst filg o sia rtz yeaa ntntido n earnings from year to year. Such security provides a market where prices are a littllee svso latiPlre i.c emsom vaaoet rm eo deratpea caendn doof tr equently shadomunroodpdaotmo a p ewt nn t n’ost icper,o videiaannsg im eerab nys which to anticipate and predict market movements. For this reason alone, day market.NYSE the in move their make to when knowing in easier it find traders If you decide to buy 200 shares of GE stock at market price, then you wounpmletladeoaar d c koTm eerha tder e kprertm.tiihoc csesue tr relnits ted price at the moment of your purchase. Your other option would be to place a limit order, which is a specific set price below the current offer. The specialist recorydolsui rmo irtdu emnrata ti clh isnegl wliieslr l sityenaoolsgtp ule rr ti ce. Specialists are required to fulfill any orders they receive, meaning that if there are still unfulfilled orders at the end of the day, then they generally buy the stotchke mseTrtslhoohpvelfeee e cs i.ap ltriiooss vt il dieq uidtsiihttneoy c k ku.oc.stnevekcilc.www