The trading floor of the New York Stoc Exchange. Today trading is is done electronically.
The US economy is made up of private companies that all issue stocks, also known as shares or equities, to raise money to help finance their activities. For new companies the first step is an Initial Public Offering (IPO) or stock launch. An IPO is a public stock offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors.
US stocks all have a dollar value and can be bought and sold by anyone through a stock broker connected to the New York stock exchange, or another US stock exchange. The value of the stocks is determined by how successful the company is in the economy. A stock can and will grow in value and fall in value depending on how successful the issuing the company is in the economy. The vaue will change daily.
A Stock Exchange can be conceptualized into buyers, sellers and Stock Brokers. Stock Brokers are middle-men, today often electronic agents, for the buyers and sellers.
The equities can be divided into three major lists or indexes , namely 1) the Dow Jones Industrial Index, a price-weighted measurement stock market index of the 30 prominent companies listed on stock exchanges in the United States, and 2) the Standard & Poor's 500 Index, a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies and, 3) the Nasdaq.
These three major indexes can in turn be divided into subunits, such as the Dow Jones Transportation Average, the Dow Jones Utility Average, the Dow Jones Total Stock Market, and Barron's 400.
The Nasdaq 100 Index can be split off from the main Nasdaq index.
The S&P MidCap 400 and SmallCap 600 can be split off from the
Nasdaq Composite Index. NASDAQ is the second largest american stock market by market capitalization of shares traded, behind the New York Stock Exchange.
Anyone can buy and sell shares on a stock exchange. To buy shares of a company stock on the New York Stock Exchange one typically goes thru a stock broker financial company like, for example, Charles Schwab. Stock Broker companies also usually provide investment advisers who, for a fee, advise customers on financial strategies. And today human brokers are more and more replacded by electronic
One of the most important principles for investing is that nobody, no matter how skilled, can outperform the market in the long run. To learn more about this principle read up on Bernie Madoff: https://en.wikipedia.org/wiki/Bernie_Madoff
Day tradign makes use of Candlestic Charts A candlestick chart (also called Japanese candlestick chart) is a style of financial chart used to describe price movements of a security, derivative, or currency. Each "candlestick" typically shows one day, thus a one-month chart may show the 20 trading days as 20 candlesticks.[1] Candlestick charts can also be built using intervals shorter or longer than one day.https://en.wikipedia.org/wiki/Candlestick_chart
A candlestick chart (also called Japanese candlestick chart) is a style of financial chart used to describe price movements of a security, derivative, or currency. Each "candlestick" typically shows one day, thus a one-month chart may show the 20 trading days as 20 candlesticks.[1] Candlestick charts can also be built using intervals shorter or longer than one day.
Compound interest is the most important principle of investing. It says that if you invest and actively keep investing over several years, the interest on your investment will grow exponentially, as the picture below illustrates. Of course, as always, you can also lose money. Your investment strategy should always be two-pronged, to minimize your losses and maximize your gains
Active investing refers to ongoing buying and selling activity by the investor. Active investors purchase investments and continuously monitor their activity to exploit profitable conditions. Active investing is highly involved and goes under the name of Day Trading. One should stay away from Day Trading for the simpe reason that you will no matter what you will not be able to outperform the market as a day trader. Day Trading is also technically and financially extremely very complicated.
Day trading is speculation in securities, specifically buying and selling financial instruments within the same trading day, such that all positions are closed before the market closes for the trading day. You will not make mnoney Day Trading so don't even think about
Passive investent on the other hand refers to investors who buy a set of shares and then simply keep them for years and decades
Given enough time, the stock market will inveriably go up, given the fact that most economies will grow over time.
A key component in the global financial industry is the Stock Exchange, such as the New York Stock Exchange, the Nasdaq Stock Exchange also in New York City. and the Tokyo Stock Exchange, the,Shanghai Stock Exchange and Hong Kong Stock Exchange, etc.
Stock Indexes help investors compare current price levels with past prices to calculate market performance. There are three major stock indexes and spproximately 5,000 total number of indexes in the US.
The three most widely followed indexes in the U.S. are the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite. The Wilshire 5000 includes all the stocks from the U.S. stock market. Indexes are generally by capitalization and sector segregation.
2) NASDAQ,
The Nasdaq Stock Market is an American stock exchange based in New York City. It is ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange.
###
The New York Stock Exchange in New York City,
To buy and sell shares on a Stock Exchange we first set up an account with a brokerage firm, such as:
J.P. Morgan Asset Management <a href="https://www.schwab.com/>"Charles Scwab <a href=Goldman Sachs <a href="<Merrill Lynch <a href="City Bank Vanguard TD Ameritrade</a Robinhood, Gen x Investing tool M1Finance , The finance super app
Three-bucket strategy
FANG stocksPassive ETF Stocks
No Load Mutual Funds
Brokers from authorized brokeragehouses do the actual buying and selling on the floor at the various Stock Exchanges. You as an investor enter your buy and sell orders in your brokerage account that you have set up with a brokerage firm.
Up intil a few years ago brokerage houses were fully manned by human brokers. But in the last few years computerized Robo-advisers, which provide digital financial advice based on mathematical algorithms have become increasingly prevalent. These algorithms are executed by software and thus financial advice does not require a human advisor. The software utilizes its algorithms to automatically allocate, manage and optimize clients' assets.
The success of the robo-avise technology has let the traditional brokerhouses to also adopt the new technologies.
Some Good introductory Youtube videos:
https://youtu.be/dFAiChOmoGI Stockmarket for beginners, How to invest.
https://youtu.be/ZCFkWDdmXG8 How does the stockmarket work?
https://youtu.be/_sPVwmGFAiA What is a dividend?
Once you have set up an account at a broker you can trade things like
What can we trade on the stockmarket?
We don't usually trade individual stocks. instead we trade something called Funds, Indexes and ETF's - which stands for "Exchangnge Traded Funds".
A mutual fund is an open-end professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital') and open-ended investment company (OEIC) in the UK.
An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments. Those rules may include tracking prominent indexes like the S&P 500 or the Dow Jones Industrial Average or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allows for greater tracking error, but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria.
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features
Invesco QQQ is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consist of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The Fund and the Index are rebalanced quarterly and reconstituted annually.
Expect more success in the long run.
Best (and only ) ETF to Track the Nasdaq for Q2 2020
Global X Cloud Computing ETF
https://youtu.be/OwpFBi-jZVg What is an ETF?
STEP 1: We'll begin by open an account with a brokerage house online. This can be a traditional brokerge house or a Generaton Z investment tool like Robin Hood.
There should be no fee involved.
STEP 2: We'll set aside $100 from our salary ech month that we will invest in the stock market. This will be money we will not touch once it has been invested.
The easiest way to think about fractional trading is what happens without it. Without fractional trading the smallest amount you can buy of an investment is generally a single share. For big investors and institutions that’s generally fine, they are trading in amounts where they are always buying large amounts of shares and so the need to buy less than a share seldom happens. However, for a smaller investor, especially one looking to diversify, buying companies with share prices over $1,000 becomes a major undertaking.
With fractional trading you don’t need to do that. Rather than fork out almost $3,000 for a share of Amazon AMZN -0.5%, for example, you can now just purchase an amount less than that. If you want $100 of Amazon, you can buy it and you’ll end up with fraction of a share of Amazon. That is to say that you’ll pay your $100 and you’ll receive about 0.038 of an Amazon share at the time of writing. Then that fraction of a share will move just as other Amazon shares do.
https://www.forbes.com/sites/simonmoore/2020/06/27/what-is-fractional-trading/#6e61d0571de3
Let;s take a look at some well-known Stock Market IndexesIndexes
https://youtu.be/LxI12aUaabc Stock Market Indexes
5.4 Trading Individual Stocks
5.5 Bonds 26
##5.10 Money Market Funds
https://money.cnn.com/data/commodities/
BlackRock, Inc. is an American global investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with $7.4 trillion in assets under management as of end-Q4 2019.[3] BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries.[4] Due to its power, and the sheer size and scope of its financial assets and activities, BlackRock has been called the world's largest shadow bank.
https://www.blackrock.com/us/individual
Blackrock Alladin Aladdin is investment technology that brings efficiency and connectivity to institutional investors and wealth managers. The same technology that BlackRock relies on for investing, Aladdin provides clients with a common language across the investment lifecycle in both public and private assets and enables a culture of risk transparency among users. Aladdin technology empowers investors around the world to run with clarity.
Stocks, Options, ETFs, Mutual Funds, Futures, Forex, Margin Trading, Cryptocurrency Trading, Managed Portfolios, Cash Solutions, Bonds & Fixed Income, Annuities, IPOs, Dividend Reinvestment, Collateral Lending Program, through your broker Account