I'm interested in Trading.

Graduate School Business School - MBA
1

<p>I know very little about Trading but I have an idea of how it works. I do not however completely understand the mechanics of Trading. But from what I think I understand, when people trade securities, they pretty much keep the shavings worth of the marginal differences when currencies are converted right? Alright, I’m totally clueless.</p>

<p>What I’d like to know is what would be a good guide that could introduce me into how Trading works or pretty much what would be a good beginners guide?</p>

<p>Thanks.</p>

2

<p>My advice?</p>

<p>Forget about learning all the technical jargon et. al.</p>

<p>If you want a book that captures the essence of trading and the stock market, I’d recommend:</p>

<p>Reminiscences of a Stock Operator by Edwin Lef</p>

3

<p>I’ll buy that. What else is there?</p>

4

<p>liar’s poker is a must read.</p>

<p>“But from what I think I understand, when people trade securities, they pretty much keep the shavings worth of the marginal differences when currencies are converted right? Alright, I’m totally clueless.”</p>

<p>If you are a flow trader, you trade for clients. If they give you a price at which they want to buy a security, you basically try to find the security at a lower price than what your client quoted, buy that security at the lower price and give it to your client at thier price and that is your profit.
If you are a prop trader you use the banks/funds money to bet on movements in different markets and trade things such as derivatives, forex etc.
mahras knows alot more</p>

5

<p>To add on, the goal of a flow trader is to provide liquidity. While a 100 share transaction may not move a stock a few millions worth may. The goal of the flow trader is to facilitate client transactions in a way that it doesn’t move the price much. They make money off of commissions and spreads. Due to the fact that they have to provide liquidity a prop trader may at times also take on directional exposures.</p>