Some "stupid" trading questions

C

cashmoney69

1. How does someone trade bonds? I thought that bonds were much like CD's, that once you put your money in, you'll be charged a fee for taking it out before its maturity.. How do traders get around that?

2. On, level 2, there're different price levels.How come I cant sell MY stock for whatever price I want. If I buy a stock at 80, and the current bid is say.. 82, why cant I manually adjust howmuch I sell them for.

3. How do you tell an ECN from an MM?

4. Is it possible to make a killing in options just by flipping the contracts instead of waiting for expiration?. If the answer is "No" then I'm not surprised because that'd explain why most people lose $$ in options.

5. People who say they trade futures might say something like "I trade the NQ"..or something like that. But what does NQ, YM, ES.. mean?.. I went to investopedia.com and typed in "ES" in the dictionary..no results. This has bothered me for a long time until now where I'm risking being called a "retard".. I dont care.

6. Do you have to be a specialist to trade on the floor of the NYSE? or could I lease a seat and trade my own account without having to work for a i-bank or someother firm?..

7. How, and where does the NYSE and other exchanges get their information that makes it SO different from the streaming news that retail traders pay 100's of dollars for?

8. On CNBC, who are those people that you see clapping at the closing bell of the NYSE and NASDAQ? Howcome no one claps for the option, future, or bond traders?

9. Sending an e-mail is FREE. I use google as my e-mail service, and charter as my ISP. they DONT charge me for sending e-mails. Will trading ever be the same way?. Free trades?

10. If I have a series 7, does that make me an "insider"..a professional?... If I give stock picks, and free information ( from my streaming news service) to another retail trader does this count as insider trading?
 
Quote from cashmoney69:

1. How does someone trade bonds? I thought that bonds were much like CD's, that once you put your money in, you'll be charged a fee for taking it out before its maturity.. How do traders get around that?

I dont have a whole lot going on so I will see if I can help. They are not trading bonds they are trading futures on bonds.

2. On, level 2, there're different price levels.How come I cant sell MY stock for whatever price I want. If I buy a stock at 80, and the current bid is say.. 82, why cant I manually adjust howmuch I sell them for.

You can sell your stock for whatever price you want, if price ever gets there. You put in a limit order to sell at whatever price you want then wait. Price may or may not get there.

3. How do you tell an ECN from an MM?

You have to learn their symbols.

4. Is it possible to make a killing in options just by flipping the contracts instead of waiting for expiration?. If the answer is "No" then I'm not surprised because that'd explain why most people lose $$ in options.

Of course it is possible but you have to be very skilled.

5. People who say they trade futures might say something like "I trade the NQ"..or something like that. But what does NQ, YM, ES.. mean?.. I went to investopedia.com and typed in "ES" in the dictionary..no results. This has bothered me for a long time until now where I'm risking being called a "retard".. I dont care.

ES is the s&p mini futures. NQ is the nasdaq mini futures. YM is the dow mini futures.

6. Do you have to be a specialist to trade on the floor of the NYSE? or could I lease a seat and trade my own account without having to work for a i-bank or someother firm?.

Not too sure about this one. I think only the specialists are allowed to trade on the NYSE. There are a number of exchanges where you can lease a seat.

7. How, and where does the NYSE and other exchanges get their information that makes it SO different from the streaming news that retail traders pay 100's of dollars for?

The more money you have the better information you can get.

8. On CNBC, who are those people that you see clapping at the closing bell of the NYSE and NASDAQ? Howcome no one claps for the option, future, or bond traders?

Not sure what the revelance is here. Who cares?

9. Sending an e-mail is FREE. I use google as my e-mail service, and charter as my ISP. they DONT charge me for sending e-mails. Will trading ever be the same way?. Free trades?

No.

10. If I have a series 7, does that make me an "insider"..a professional?... If I give stock picks, and free information ( from my streaming news service) to another retail trader does this count as insider trading?
More...

No and no.
 
You ask a lot of excellent questions but these are questions worth putting the time and effort into researching.

There are countless resources on bonds and options and how the market works and you need to put in the effort on your part to make this really worthwhile.

No one can easily answer those questions in a sentence and have you truly understand. If you are serious, then make an investment in yourself and in your education.

Start with google or the business section of the bookstore. Some good advice is to buy a Series 7 test prep book in the Test Guide section and read it as it will give you a broad understanding of the market.

It is too easy to just ask others to lay it all out for you with general broad questions. I mean this honestly and not in a mean way. people who succeed make the effort to absorb the knowledge for themselves and ask merely to be pointed in the right direction.

So my answer to you is that some of the questions are quite basic and can be answered easily with some research, others come from experience in elarning about the market and the industry. The level of work you are willing to do yourself is an indication of how seriously you want to learn.... :D
 
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