STOCK TRADING – CURIOSITY 2

Stock trading can be a business only when a person understands and calculate the risk and return based on the knowledge and trade with discipline and rational thinking.
Deals are made between a buyer and a seller at the counter and is executed at a price which makes up a trade. This settlements are done by the exchange end of the day.
Orders are placed through brokers, a trade plan is important where a trader identifies the entry price, exit price, risk, reward etc before placing the orders. If a trader buys a stock for the first time, its called Long, if he is exiting the position by selling the bought stocks, its called Long unwinding, if a trader sells the stock with out holding any prior position its called Short, if he buys the stock back before the market close, its called Short covering.