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The Forex Training Guide

Contents

Chapter 1: What the Stock Market is All About
...
5
Chapter 3: An Introduction to Forex
...
9
Chapter 5: Understanding Statistics
...
14
Chapter 8: Risk Management
...
17
Chapter 10: Expert Trading Options
...
20
Chapter 12: In Review
...
23

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Chapter 1: What the Stock Market is All About
In any business or moneymaking venture, preparation and foreknowledge are the keys to
success
...

In the stock market, this rule applies to the nth degree, as you are investing your own money in
what could be considered a high risk wager, and you are playing with fire if you do not have at
least a general background knowledge of how it functions
...

In many ways, trading on the stock market can be compared to driving – you do not have to be
an expert to get behind the wheel of a car, though you are expected to have some previous
knowledge about basic traffic laws, including moving violations, safety regulations, and other
legal vehicular infractions, which are learned through either specific study and coursework or
even through some form of simple exposure (such as the years you have spent riding with your
parents and others who have driven for years)
...

The same is true in entering the world of the stock market
...
And just like someone who is behind the wheel of a
car and getting ready to touch the gas pedal for the first time, you should start out with caution
and work your way in slowly
...
Likewise, when you
select your first investment, you should choose something stable with little fluctuation and not
invest a large sum of money on this first venture
...
In the stock market, there
are stockbrokers and other experts who can give you input and advice to help you in building
your knowledge of the commodities in which you are interested, essentially “steering” you
toward better stock market buying and selling decisions
...
However, in this book, you will find all the basic information you
need to get started down the path to trading success
...
All you have to do is
read in order to gain knowledge and wisdom, step by step that will bring you to a heady level of
success
...

How Investment Works
Any time you are going to be putting your money into a fund; it is a good idea to start by
understanding what you are buying into
...
The more you know in advance regarding
the functionality of the system, the less likely it is that you will take a heavy hit, ending in
devastating loss
...
When you buy or sell a stock on the open market, you should keep in mind
that you are dealing with real objects, not pieces of paper; you are buying and selling real parts
of a particular company, its product, or some other various commodity
...
Of course, you could be one of millions of
shareholders, as most companies and products are broken into minute pieces of the whole, but
you are still considered an investor in that company or product until you sell your shares
...
You
may have even bought the oil filter that has been put on the car, and you may feel that this
investment makes you part owner
...
However, as long as you continue to invest in
the gas for the car and take care of the maintenance needs, you can claim part ownership of the
car
...
When the price per share drops and is considered low, it is an ideal time to
purchase
...

In doing so, you become a stockholder, and the value of your holdings will fluctuate from day to
day
...
This is
the goal of all traders and means that your stock will become more valuable
...
When the price of the stock
in your possession reaches a high point, it is time to sell, making a profit on your original
investment
...
It is important to make sure that you do not purposely take a net loss because
there are plenty of occasions when you could be forced to take a loss
...
If possible, you want to hold off until they are each worth

4

perhaps forty dollars, in essence doubling your money
...

There are other, more complex ways to invest in the stock market
...

Making Decisions In The Beginning
Let us return to driving as a reference
...
Instead, you will stay in
residential areas or at least on the access road, where there is less pressure to maintain such a
high speed
...

There are small investment opportunities referred to as “penny stocks”, which will help you try
out your sea legs and get a feel for how the stock market works prior to investing large sums of
money and risking a big financial loss
...

Once you get the hang of it and can better judge the market trends, you can comfortably move
on to more complicated and adventurous areas of the market
...

Be aware that, just like you may fall off your bike once or twice and end up with some scrapes
and bruises, you may lose money in an investment here and there
...
In poker, you cannot expect to win every
hand, and the same is true in the world of investments
...
Such diligent study can help you improve your
statistics drastically in a short time
...
In contrast, if you know little or nothing about these trends can cause serious loss
...

Market trends are variable and volatile, both on a daily basis and over extended periods of time
...


5

What does it mean for the market or a particular stock to rebound? Assuming that the value of
a company or its stock has plummeted to a level that seem unrecoverable, leaving it practically
worthless, it may feel as though that company is in danger of bankruptcy and falling off the
scope of the free trade markets altogether
...
Everyone wants one,
and this product may be in short supply upon its introduction, causing a race to the department
store shelves
...
The stock price for that company’s shares will recover, and the resulting
gain in value would be considered a rebound – a return to the original status (or better) prior to
the devastating loss
...
If several different areas of the market are in a
steep downward slide, with values dropping rapidly (perhaps even ten or twenty percent in a few
days), it is referred to as a bear market
...

Your best bet in these cases is to either sell before prices drop below your original purchase
price or to hold onto the shares until the market rebounds
...
Then, if you patiently await the recovery or rebound of the market, you can
make a great deal of money from a bear market
...

At the same time, a bull market is a strong general upward trend for many stocks
...
You are safer if you
are indoors when the running occurs, and by the same token, if you own stock during a bull
market, you are in a prime position to increase your net worth and sell your shares, making a
great deal of money
...

The Market Outlook
By taking note of various changes in the status of different available stock options, you will learn
how to spot early market trends, giving you a clue to the future of a particular commodity, and
this can only add to your chances for profitability
...

However, you can make an educated guess, much the same way a meteorologist forecasts the
weather
...
With a little time and
seasoning, you can attain the same level of experience and intuition within the stock market
...
Next, we will discuss some of the properties
of Forex and how much more complex this stock market entity can be than a standard domestic
market
...
The following chapter is an
introduction to the exciting and somewhat scary world of the Foreign Exchange Market, or
Forex
...
In the United States, there are several
branches of the stock market, each with their own name
...
Of course, all stock market transactions in the United States
take place on the New York Stock Exchange (NYSE)
...

There may be one or more distinct markets
...
Several countries across the world in almost every time zone participate in trade on
Forex, with multiple currencies being utilized and stocks and commodities from all participating
countries being offered for trade
...
It remains
open for trade 24 hours a day, 5 days a week
...
This means that the
value of your holdings could potentially plummet overnight, while you sleep, because other
countries are still trading while you are in a dream world
...

This is one reason for several safety options, like limit orders, which we will discuss later
...
In our car analogy, this would be comparable to
having asked someone who has never driven or even changed the oil in a car to rebuild the
engine
...
You will have to contend with not only the
value of your stocks and your currency, but also the foreign currencies involved in any trades or
exchanges on Forex, as well as the inconsistencies of values of particular goods and services

7

across international borders
...
On the domestic front, the work is mostly done for you, and all you have to do is
navigate, much like an automatic transmission
...
It can be distracting, and it certainly
complicates the act of driving
...
Knowing what countries and currencies are involved in
Forex can assist you by allowing you to more closely monitor the financial situation in the
nations with which you will be interacting
...
It was borne out of the
Bretton Woods agreement in 1944, which set forth that foreign currencies would be fixed
against the dollar, which was valued at $35 per ounce of gold
...

Of course, his intention was to sell the currency, which he felt was priced too high against the
dollar, then buy it back later when the value had declined, turning a quick profit
...
This allowed for a stronger backing in the foreign markets, and the
United States and Europe began a strong trade relationship
...
At this time, foreign exchange equaled about $70 billion a day
...
5
trillion daily
...
Though the major players in the European market were deeply
involved in and veterans of international trade by the time other markets joined in, there were
more currencies to keep track of – the franc, the pound, the lira, and many more – than was
reasonable
...

Forex Today
While some countries have still not accepted the currency as their own (such as Britain, who still
uses the sterling pound), the process of currency conversion has been simplified without the
large number of various currencies that were previously dealt with
...
S
...

Today, the Foreign Exchange Market is international and worldwide
...

These now include most of Europe, the United States, and Asian markets, especially Japan
...


8

Another completely separate but perhaps more important concern with trading in Forex is
understanding how trade works in multiple currencies
...
This
means studying not only domestic market trends and currency values, but also those of foreign
markets
...
S
...
S
...
With so many variables and volatile currencies being exchanged, how
can you know a good buy or sell when you see one without complete awareness of the value of
foreign currency?
The first step is to find a source that will give you a basic idea of the current exchange rate
between your domestic currency and the foreign currency in question
...
Of course, this will not
be consistent down to the cent or fraction of a particular currency throughout an entire business
day, but at least you will have your starting point from which to begin, almost like North on a
compass
...

Currency Expression
It is also good to understand the means be which the currency conversion is expressed
...
In this configuration, the two
currencies are listed in an XXX/YYY ratio, with the XXX position referred to as the base
currency
...
It is sort of like
making reference to miles per gallon or rotations per minute on a car – a direct comparison of
one to the other in the form of a ratio
...
For example, if the British pound sterling
can be traded in thousandths, the currency will be expressed to the third decimal place
...
S
...

In one cross-rate expression example, one U
...
dollar may be equivalent to 117
...
This ratio would be expressed as 1
...
456
...
S
...
Since the whole number value (or big figure, as it is referred
to) of the secondary currency, or the currency in the YYY position in terms of conversion
changes so infrequently, often only the decimal portion of the number is mentioned in the
Foreign Exchange Market
...
456, with no mention at all
of the 117 whole yen that is shown in the ratio
...
456 to 117
...
024
...

The most common currencies found in Forex are the U
...
dollar, the British pound sterling, the
Euro, the Japanese yen, and the Australian dollar
...
However,
with the consolidation of most of the European market trading on Forex to the Euro, many
currencies have been eliminated, making trade on Forex for other lands less complicated
...
S
...
The same
is true in reverse should the value of a foreign currency increase against a U
...
dollar
...
We will discuss this process, as well as other ways to
take advantage of the Foreign Exchange Market (like arbitrage) in more depth in future
chapters
...
Such ideas will not seem so “foreign”, and
you will be caught up and knowledgeable right along with the pros
...

Forex Trending
Following charts, listening to the advice of market analysts and chartists, and learning to make
educated predictions yourself will help you keep track of various marketing trends
...
Will it be a clear, calm day with little activity, or is there a storm brewing
with winds of change and uncertainty? How can you tell what will happen with your holdings the
following day or even further into the future?
Simply learning to read market trends can remove a lot of natural apprehension and uncertainty
for beginning traders
...
The following chapter will explain more about how to interpret the statistics
and basic trends
...
Now, you
would like to know how to gauge market trends in order to profit from your business ventures on
the open market
...
You want
the real goods
...
While you can never be 100% sure at any given time
of the next move that will be made on the market as a whole, being able to read statistics and
interpret them will place you ahead of the pack in regards to “guessing” what will happen next
...
If you can keep track of the cards that have already been
played, you are more informed, statistically, regarding what is likely to be dealt next, meaning
you can place abet with greater insight than someone who has no clue what has already been
played
...
You simply learn the pattern and follow it to the end, reaping
the financial rewards
...
They monitor
the market hourly, daily, weekly, monthly, and yearly so that they can provide big-time traders
with the same knowledge mentioned before
...
The same is true for stockbrokers
...

The best part of this is that you have access to the same information as these VIP clients
...
These charts are basically a combination of
a line graph and a bar graph that show the trend of various stocks, indexes, or other interests
over a specified period of time
...

You can actually find information on most commodities and their market trends for years in the
past, and some even all the way back to their introduction to the open market
...

Understanding Market Trends
Understandably, as economies vary, the value of various commodities can change
...
Along with that power comes a higher value for the items purchased
...
Therefore, stockholders become wealthier in terms of assets, simply because the
shoppers are driving the market with their purchasing power
...
A strong upward trend in the stock market is an excellent sign for any
economy
...
For example, warfare rarely has a positive effect on the stock market
...
Some analysts were sure that it would never properly recover
...
However, the critics
proved to be wrong, and the United States proceeded to rebound, or recover from a bad
downtrend, in a strong manner
...

In watching the reaction of the stock market, you can learn to read trends based on world
events
...
Especially on the Foreign Exchange
Market, you will find trends vary depending on many current events
...
This is referred to as devaluation, which will be discussed in
greater detail in the following chapter
...
What factors affect the value of currency on Forex, and is there any way to
control this?
Devaluation And Revaluation
As mentioned in the previous chapter, devaluation refers to the purposeful decline in value of a
currency in relation to other currencies as charged by a government entity
...
S
...

S
...
This makes any items
purchased in the foreign currency more expensive for those trading in U
...
dollars, as the
exchange rate is lowered
...
S
...

An opposite change in value can also occur, raising the value of the foreign currency
...
While it may seem that purposely adjusting the value of a nation’s
currency is “cheating”, or taking an unfair advantage by making foreign products cheaper to
purchase and increasing the value of exports, there are regulations in place to prevent the
manipulation of exchange rates for such purposes
...

There are ways in which you can take advantage of devaluation and revaluation, which will be
discussed later on
...
As soon as you drive a new car off the lot,
the value is almost cut in half
...
However, over the next few years,
the car continues to lose value at a more gradual pace
...

Currency appreciation and depreciation are changes in the value of the currency that are driven
by market forces rather than by government mandate
...
The exchange rate, which was currently six rubles per U
...
dollar, would over a period of
time change to 9
...

However, prior to the change, there was a widespread panic within the former Communist
nation, and the value of the ruble dropped due to many people in Russia opting to trade in their
securities prior to maturity
...

The same sort of crisis occurred in the 1920’s with the crash of the U
...
stock market
...
In running to the
bank, people actually caused the crash rather than escaped it
...
While
inflation is bound to occur, it can be minimally tempered through the use of the currency
valuation
...
Often, men enjoy taking old cars and restoring
them to their original beauty
...

The ever changing rates of currency conversion and volatility of the market create an inherent
market risk, or a day to day potential to experience loss due to fluctuation in securities prices
...
However, some risk can be offset by particular types of investments or ways of
investing that are more secure or protected
...
These options include the
ability to preset your purchase or sell price for a specific commodity, as well as using various
predetermine order levels to place orders and complete transactions
...
There is always a cloud hanging over your head waiting to burst, and all
it takes is one little pinprick
...
The next chapter will help you get a
grasp on reality and what is involved in balancing your risk factor with a grounding in reality;
your ego with your id
...
However, you want to know everything you can about
balancing that risk with intelligent investment options
...
The long position is basically the purchasing position – you are about to take on a
long-term commitment for ownership of some stock, security, or other traded commodity
...

The best time to take up the long position is when stock prices are low
...
In fact, as others take the long
position and purchase at the same time you do, this will actually drive the value of securities up
through the standard rule of supply and demand, causing the beginning of what could be a bull
market
...
The prices tend to drop on
any cars left on the lot for sale, and the dealer is more often willing to bargain because he or
she wants less inventory on the lot
...
This can only be of assistance to you
...
You should never sell for a price that is
below your cost, as this brings negative equity and loss of funds
...

In other words, if you buy a security at fifteen dollars per share, and it quickly rises to twenty-five
dollars per share, you may very well feel that it could hit thirty dollars per share within a week
...

Market-Makers And Selling Short
What if the stock values are up incredibly high, but you did not get in on that particular
commodity and own no shares? Your first step should be to visit a market-maker or to make a
deal with a broker for a short sell
...


14

The firm will then turn around and sell those shares to an individual at that low price, regardless
of the market rate, in effect making its own market (thus the name)
...

A short sell is another option for a quick profit
...
Your job is to then
wait for the stock price to go down, purchase the same quantity of stock, and return the holdings
to the broker, keeping the profit from the sale, minus the broker fees
...
They will purchase the car from
you at a very low price, then turn around and sell it on the lot for a high profit margin
...
Because you have sold shares
for a high price, you have already profited, and in the worst-case scenario, the particular stocks
will not drop in price
...

How can you be sure that you will not overshoot the best price options or miss a good rate
because you are unavailable to place a buy order or sell order with your broker? Is there a way
to set limits on your trades? Next, we will discuss ways to protect your investments and limit
your risk factors
...
There are several ways to do this, and we will discuss those in this chapter
...
For instance, you have designated to your stockbroker that you will not sell
X Security until its value reaches a minimum value of Y dollars
...
Setting limits for the price you pay for a
particular security, as well as the price you will accept to sell it, protects you and your
investment in several ways
...
Any loss that
occurs with limit orders will always be unrealized loss, or a loss that is not measurable in liquid
assets or cash
...
Since you have set a limit that does not allow your commodities to be sold for
less than the original cost, you cannot possibly have a loss in your net worth
...


15

Another way to protect your assets is to hedge
...
When that price is reached, the order will be processed
and the transaction completed
...

You can also buy on margin
...
Then, when the value of the securities you have purchased rises and you are
able to sell for a profit, you repay the loan and keep the excess from the sell, minus the broker
fees
...
However, online services
are often less expensive than live agents, but you can research to determine what your best
option is
...
A whipsaw
is market trend that defies the odds
...
Despite how
careful you are as you learn to drive a car and become coordinated, sometimes you cannot do
anything to avoid being rear-ended
...

For example, if you purchase a security at five dollars per share because the stock seems to
have fallen as far as it can go and appears to be starting an upward trend, then unexpectedly,
the stock plummets to one dollar per share, this is considered a whipsaw effect
...
The
stock will do one of two things – it will either dissolve entirely, and the company will go bankrupt
(this is what you do not want to happen), or it will rebound, and you can opt to wait for a chance
to turn a profit or you can get out as soon as the purchase rate is reached
...
However, if you find that you are involved in several of these instances, you should
seriously reconsider your investment options
...
You should seek advice for any future investments you expect to
make prior to purchasing any further stocks or securities
...
You could either purchase
additional stock in the same company at the lower price if you expect it to recover, or you can
opt for another hot commodity that is about to explode in price, either of which will help you
offset your loss
...


16

All of these are viable options to recover a loss, but waiting for the share value to rebound is
always the first choice
...

As you grow and learn about these various options, you will need to feel more comfortable when
surrounded by financial gurus and geeks who speak what sounds like gibberish, muttering
words you have never heard left and right
...


Chapter 9: Buzz Words
Now that you know a little more about the stock market, and you have decided to try your hand
at investment, you should be more concerned with understanding the jargon you will hear on the
trading room floor
...

Margins, Spreads, And Other Condiments
Okay, so it is margins, not margarines, but it sounds very similar
...
For instance, when you think of a margin, for many
this means a variable – like the “margin of error” in a statistic
...
Then, when the value begins its next upswing, you
sell the stock at the higher price, pay back the margin (along with the premium accrued), and
retain the profit
...

The margin account is provisional based on the value of the stock
...
This is
referred to as a margin call
...
For instance, a forward trade is set
up between two individuals or two companies outside the open market
...
There is usually a bid made – the offer to buy
a commodity at a certain price – and an asking price or offer – the price for which the other
business entity is willing to sell the securities or other holdings
...

If the spread cannot be narrowed and eventually closed, no deal can be made
...

Usually, the forward price is outlined as available for a particular date, and should the
transaction not be completed on this date (referred to as the transaction date), then the trade
must be renegotiated
...
While several other terms relating to the stock market will be similar because of the
common language, there are some specific terms that are very different in the British trading
vocabulary
...

However, in Britain, this type of investor is simply referred to as a “jobber”
...
This does not refer to a green patch of
land, a measurement in inches, or even 36 of something
...
In other words, you can have a yard of dollars or a yard of yen, and though it is the
same quantity of bills, coins, or whatever physical currency is used, it is not necessarily
equivalent in value
...
S
...
They have chosen to
still use the pound sterling, a currency that has been used in the country for hundreds of years
...

Open And Shut
In the stock market, there are various types of orders that can be placed to help protect you
from making a bad investment or to limit the amount you pay for a certain security or other
commodity
...

This action is referred to as closing a position
...

An open order is exactly what it sounds like, meaning that the order remains pending until it is
either executed by your stockbroker or canceled by you as the client
...
You also have options like One
Cancels the Other Orders
...
Then,
should one of those reach this preset low price, your stockbroker will follow your direction and
invest your money in that particular security, followed by a cancellation of all additional orders
...
A quote is never completely accurate and is usually referred to as a spot
price, as the value of a security can change within a few seconds
...
When you put in an order, the broker then processes the fill, or
completion, of that order
...

The completion of a trade or purchase, referred to as a settlement, can also be called the
execution of a transaction or realization of an order
...

Next, we will consider some specialized, more complex trading options that you can use on
Forex to take advantage of the volatility of the market and the constantly varying exchange
rates
...
You no longer have to work so hard
to determine currency conversion or find the next big explosive commodity
...

What, then, becomes the next big challenge for someone trading on the open market? What
keeps things from becoming monotonous and boring? First of all, there is always something
new and different happening on the Foreign Exchange Market
...

However, there are various ways that you can take advantage of the variance in currency
conversion and a lag in time between markets that can affect trading values
...
Although computers have made worldwide communication almost lightning fast these
days, all of these markets can trade together with fairly equivalent values for the securities
shared across currencies
...
Seasoned traders have
learned to take advantage of this lag in the market trending by using a process called arbitrage
...
The process
is a bit complex, so we will use an example
...
S
...
5
British pounds, meaning that everything is going to be twice as expensive in British pounds
...
If they were
equivalent, then the stock would trade for two dollars in the United States and one pound in
Britain
...

If the value of the stock drops in Britain to
...
In this case, arbitrage would take place when
you bought shares of the stock in on the British market in pounds and sold it on the U
...
market
in dollars, benefiting by the slow communication of the fall in value of the stock
...
40 per stock
...
What exactly does this involve? You must closely watch the
changing conversion rates
...
This is very similar to arbitrage, but the area is much riskier due to high volatility
...
S
...

One piece of advice to keep in mind, though, is that it is best to immediately dispose of all liquid
assets in foreign currency, usually in the same day
...


Chapter 11: Other Trading Options
Besides the expert options described above, there are other nontraditional ways to make money
on the stock market
...
Some types of trading are simply not for the faint of
heart, and that means you must have complete motivation and an adventurous spirit to take part
in these areas of the market
...

Day Trading
Day traders take on some of the greatest market risk of all
...

These stocks are extremely volatile, and for most, day trading is a quick way to lose a great deal
of money
...
You cannot be certain of the
overnight position (the net value at which a stockbroker or day trader will open the following
morning)
...
In these cases, the day trader has to set a time limit for him- or herself to get out,
selling all shares, so that he or she can sleep soundly while the world spins round and start the
next day fresh
...
In fact, it is not really
recommended at all, and most people who partake of this volatile part of the industry are
extremely seasoned in trading on the open market, do not consider the risk factors carefully
enough prior to entering this branch of the market, or have enough money that they simply wish
to try this form of investment and do not care if they lose a goodly sum
...
Fannie Mae and Freddie Mac are two of the major
corporations from which stocks are purchased on a secondary market
...
When a person purchases a home, he or she requests a loan from the
bank, usually for about eighty percent of the cost of the house
...

Meanwhile, to assure that money is available at that bank for the next person who needs a
mortgage loan, Fannie Mae or Freddie Mac, two entities originally established by the United
States government, will purchase the loan from the bank
...

What do these agencies then do with the deficit they have acquired? They sell it
...
Eventually, those securities mature,
probably about the same time that the original loan is paid off to the bank, and the investors
reap the benefits of their investment with the interest earned
...
This
is the exchange of securities or bonds in order to take advantage of lower interest rates
...

For example, let’s say one business is in possession of a bond “A” that is paying out only two
percent interest in its current market, and another is holding bonds “B” in its market at three
percent interest
...
They can mutually benefit from a sale of the securities to each other due to a
gain of more interest
...
This is more often
processed between businesses on the foreign market rather than individual parties, though with
the correct broker, it could be accomplished
...

If you determine that you should have stock options as a business, you will probably decide to
hire a fulltime consultant for all your financial needs, including the handling of your share
holdings
...


Chapter 12: In Review

21

After shoveling through piles of information and taking in so much knowledge, you probably feel
like you are swimming in terminology and cannot remember just where to begin
...
The following pages are a brief overview of the in depth discussions in this book,
allowing you to quickly reference a topic in a bind
...
As a shareholder, your net worth increases and
decreases based on taking a short position (selling) when values are high and a long position
(buying) when prices are low
...

When most commodities traded on the market are on a strong upward trend for a period of time,
this is referred to as a bull market
...
If no such trend is recognized, and the value of stocks and
securities is fairly even, this is referred to as flat
...
Currency is the denomination or monetary division used in a particular land (such
as the U
...
dollar or the Euro)
...
Determining what the equivalent is would be referred to as
currency conversion
...
Britain, which to this point has opted to
continue using the pound sterling, also takes part in international trade, as well as the United
States, Japan, and Australia
...
Determining whether or not
this is worthwhile depends on the currency conversion rate
...
Purposeful
change in the rate of conversion by a government is referred to as valuation – devaluation is
taking value and strength from the currency, and revaluation adds strength and purchase power
to the currency
...

Careers In The Market
Without the assistance of professionals, it is nearly impossible to trade on the open market
...
They
use such information and basic history to help predict the outcome of different aspects of the
market in the future
...

A stockbroker is an individual or a company that assists you in making your investments
...

A market-maker does the same job as a stockbroker, with the exception that this individual or
company retains an investment in a particular variety of securities and bonds that can be sold in
short order to a client for a lower price so that the client can make money by immediately selling
the same shares at the higher market price
...
This involves the
opposite approach – borrowing money to purchase a stock or security that is at a low market
value so that the client can later resell the commodity at a higher price
...
By placing limit orders, you guarantee to
the best of your ability that you will not lose money on the market and virtually guarantee at
least a minimal profit
...
If you leave standing instructions with your stockbroker, these are referred
to as open orders that remain such until the transaction is executed and the order filled
...

Also, set a value date – a date at which time you can take an average of the value of a
particular commodity and review your options
...


Chapter 13: One Final Option
While “Chapter 13” is not an appropriate way to end a financial endeavor, it is, in this case, one
of the most important conclusions to an incredibly helpful tool full of investment advice,
especially when it is placed at the end of a book to offer assistance to those threatened with
bankruptcy due to bad investment decisions
...
Much like moving on to a new car after purchasing a
lemon that has been nothing but a nightmare, you can reverse your direction
...
In some cases, it is virtually impossible for an individual to ever get the hang of the
functionality of the market
...


23

It is okay not to fit into the market
...
One final option you have is to create a discretionary account
...
You never again have to worry that you have made a bad investment
...
Your broker will simply let you know when you have
increased your net worth or if your assets have taken a dive
...
Now, you have the basic knowledge and the essential reference guide to get you
started on the path to success and wealth that you can access at any given time
...
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