Stock Market Trading Systems

Archive for January, 2010

I do not understand what the Stock Market really is or how it works. I would really appreciate if someone could explain it to me in easy to understand terms. Thank You.

Well, the stock market is a great place to invest your money in. This is how it works: 1) Let’s say you bought 100 shares of a stock. The stock value is $14, so you pay $1400 2) The next day the vaule increased by $2 to $16, and you decided to sell it. If you have sold 14 shares you have earned a $1600, which is a $200 profit. In simple terms, the stock market is like a waiting game, where you buy cheap and sell expensive.

okays so im in high school and we are playing a stock market game http://www.smgww.org/ and i dont know that much about hwo to play the game and how to win the game,, could someone explain to me,, and could you tell me wat are some good and really good comapnies i can invest in,, so my team can win?

Please Help

Thank You

Invest in natural resourse and Emerging Markets.

What Are the Causes and Effects of the Great Depression?
The Great Depression has affected the United Sates in many ways and has caused a loss that we can never fully recover from. It was gap in U.S. history that had cost us many lives and jobs. The depression began in late 1929 and lasted for about a decade. The 1920’s or “The Roaring Twenties” played a big role in causes of the great depression. The 1920’s were a time of peace and great prosperity. After World War I, the “Roaring Twenties” was fueled by increased industrialization and new technologies, such as the radio and the automobile. Air flight was also becoming widespread, as well. The economy benefited greatly from the new life changing technologies. As the stock market soared, many investors quickly snapped up shares. Stocks were seen as extremely safe by most economists, due to the powerful 1920s boom. Investors soon purchased stock on margin. Margin is the borrowing of stock for the purpose of getting profit. If a stock drops too much, a margin holder could lose all of their money and owe their broker money as well. From 1921 to 1929, the stocks rocketed. Millionaires were created instantly. Soon stock market trading became America’s favorite pastime as investors bought stocks to make a quick profit. Investors mortgaged their homes, and foolishly invested their life savings in hot stocks, such as Ford and RCA. To the average investor, stocks were a sure thing. Few people actually studied the fundamentals of the companies they invested in. Thousands of fraud companies were formed to trick uneducated investors. Most investors never even thought a crash was possible. To them, the stock market “always went up”. By 1929 the stock market reached its all time high and investors were buying stocks by the dozen. Then all of a sudden prices started lowering. All investors sold their stock buy no one wanted to buy. This one day had caused a decade of Depression.

The causes of the Great Depression
In 1929 a panic on the New York stock Exchange introduced a mouth dropping effect. The stock market that had been giving everyone the profit they wanted collapsed. Several events that occurred before 1929 caused this to happen on a long term basis.
During the roaring twenties everyone was prospering and making profit. The manufacturers were trying to sell there products to as much financial groups as possible, but they were unable to lower there prices so the poor can buy there products. (Lamb, Annette 2008).
The government came out with the process of credit. It worked by a person buying a product over time paying a monthly bill. For example, if someone wanted to buy a washing machine that cost $500 but they only had $100. They would pay there $100 and then pay a certain amount every month till the washing machine was paid off. The government also charged the buyers more than the product actually cost in stores, so in the end they wound up paying more than the original price. This process put many Americans in debt. In record almost every American spent 75% of there yearly income on consumer goods. (Lamb, Annette 2008).
When Americans put more on credit than they could afford they went into debt. This happened to many Americans making the nations total go down and causing a worldwide problem.
The short term reason for the stock market crash of 1929 was the middleclass people getting into the stock market. Middle income people started buying stocks on margin in order to get themselves in on the economic boom the U.S. was having during the roaring twenties. At that time there were soaring prices for stocks. People paid a small percentage of a stock’s price as down payment and borrowed the rest from a stockbroker. (Lamb, Annette 2008)
The system worked well as long as stock prices were rising. If they fell, however, investors would have no money to pay off the loan. In September 1929, some investors began to think that stock prices became too high. They started selling their stocks, believing prices would soon go down. By Tuesday October 24, the gradual lowering of stock prices had become an all out slide downward. A panic resulted. Everyone wanted to sell stocks, and no one wanted to buy. Prices plunged to a new low on Tuesday October 29. A record 16 million stocks were sold. Then what Americans thought could never happen, the stock market collapsed.

The effects of the Great Depression
The Great Depression affected not only the people but the country as well. International trade and industrial production dropped sharply right after the stock market crash of 1929. Wages shrank, unemployment rose, and widespread misery proved that something was wrong with the economic system. The whole world felt the impact of this tragedy but Americans suffered it the worst. (Slee, Tom 2008)
What people in America noticed almost instantly about the Depression was the reduction of their incomes. In addition to millions of wage earners who were thrown out of work entirely, millions more became part-time laborers. Even those who kept full-time jobs often had to accept a reduction in wages. (Slee, Tom 2008)
In addition to the cut wages the Depression also affected international trade and manufacturing which shrank rapidly and filled many people with apprehension. In 1929 the estimated value of United States imports and exports had reached almost ten billion dollars. (Mandel, William 2008). By 1933 the value had dropped to three billion. Furthermore, American industrial output was cut in half. This had a big affect on the United States because most of there exports were used by the government to pay bills.
With all the people taking there money out the bank to try and recover their savings, the banks went bankrupt. Thousands of banks were forced to close as a result of this. Business owners also suffered from the Depression. With there bills and debt rising they were no longer able to pay there workers or buy their products, and were forced to fire many workers. (Mandel, William 2008). It was hard to find affordable materials and eventually many businesses had no choice but to close.
The dislocation of trade and industry, the falling prices, and the rising unemployment that came with the Depression forced statesmen and economists to seek remedies. But the experts could not agree in what was wrong or what measures would prove most effective in restoring the U.S economy. The solution to this problem would soon come. (Mandel, William 2008). During the 1930s the government was providing weapons, tanks and other much needed necessities to Great Britain under the lend-lease act. This was a pre-start to the coming war effort. In 1939 when America was hit at Pearl Harbor, World War Two struck out. Many Americans enlisted to go to war in order to get money and start a new life for there families. (Mandel, William 2008). With all the needed supplies for the war, the government hired people in factories to make weapons, munitions, tanks, airplanes and any other supplies needed for war. This was a big opportunity for unemployed people and many took the job as factory workers. As the unemployment rate was lowering so was American debt. (Mandel, William 2008). With people getting money and paying off there bills, they were able to buy everyday items to keep them going. This cycle opened many more businesses and eventually pulled the United States economy out of the Great Depression.
ok well this is my social studies report on the causes and effects of the great depression. it is split into three parts. the first is the introduction and explains what led up to the great depression. the second is the causes and the third is the effects. i just need you just to edit my grammar and punctuation and im good. also i still need a conclusion if you can help me with that.
ohh yea and the names with parenthesis and years are just giving credit to the sources i used. don’t ask my teachers made me do it….
i did this all in like a night and i think i deserve to get it edited for all the work i went though. and i suck at grammar so i cant edit it myself.

Forget the Answerer #1. I will read it for you =]

I didn’t find anything wrong with it. Not one bit. Everything was factual and straight to the point. You didn’t confuse me, one bit!!!

Do you have pictures of the Depression?

http://www.forties.net/files/migrant_mother_1936__great_depression.jpg

http://userwww.sfsu.edu/~hlcooper/images/HIST%20450%20Images/DLangeMigrantMother.jpg

http://history1900s.about.com/library/photos/blyindexdepression.htm

Love the report!!!!!!!!!!

I’m not sure I understand how our economy works…is there a website or somewhere that will explain it to me in the simplest terms possible?

I’m also not sure if I understand the whole Great Depression thing either…no one’s ever explained it to me in more than "the stock markets crashed"…so same deal, anywhere I can learn about these in the easiest For Dummies way?

I do not know of any websites, but i can recommend three great books, all of which i have read.
For a basic understanding of the economics, I recommend the book i used in my Econ 101 class, it gives simple explanation of the dismal science (you can get it used for 9$) :
http://www.amazon.com/Economics-John-Taylor/dp/0618640851

I also recommend Applied economics, which talks about political policies and economics (you can get it used for 18$), it talks about political policies that lead to economic crisis problems:
http://www.amazon.com/Applied-Economics-Thinking-Beyond-Stage/dp/0465003451/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1235835811&sr=8-1

And Third I recommend The Great Crash (You can get it used for 8$), it was written 60 years ago, but it talks about the cause of it (what the author perceives is the root cause), and i think you were looking for root cause as opposed to government solving of the problem:
http://www.amazon.com/Great-Crash-1929-Kenneth-Galbraith/dp/0395859999/ref=pd_bbs_sr_2?ie=UTF8&s=books&qid=1235835819&sr=8-2.

If you can only get 1 I would recommend Applied Economics, because the first one is a textbook and the third is 60 years old, although the third one is VERY relevant to today’s predicament. But if you have the means get all three.

I hope you enjoy them!

Hi…i m 23 years frm IT background..

I always wanted understand stock market which they show everyday on news papers and news channels…

any body help on this??

Any body help on this???

simple explanation, hopefully…

the dow is an average of the "top" 30 companies
nasdaq is like 500 companies (mainly tech companies if i remember right)
nyse is basically all major companies

the points are a way of averaging out the value of each companies shares.

the dollar value of shares changes each day based on the public sentiment about that company. for example, if the IPOD had bombed, apple stock would have went down, but the IPOD was good so people though apple would grow and do better as a company, so the share value went up.

email me if you have any questions.

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http://FreeTradingVideos.com : As expected, the markets crawled up a bit today, but still remaining UNDER resistance.

Technology stocks suffered, but financials stayed strong.

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Forex Trading for Dummies. Visit http://www.SNURL.com/FapTurboTrading and get A Forex Robot That Is Capable Of Doubling Your Money Every Single Month…
FAP TURBO is a forex robot that runs on your computer. They have a video tutorial section where you get videos that range from 3-7 minutes in length that explain how to setup the system. The videos are extremely well done I was very impressed. Its good for a beginner or intermediate and you don't need to be a tech genius to figure things out.

You will need a MetaTrader 4 broker and they recommend ForexMeta.com
They recommend doing a demo account to start with their system as you do own the system for life so no rush on making trades. Which is refreshing to hear.

The system has a scalper system and a long term trading system both are explained in the videos.

Check it out. Visit http://www.SNURL.com/FapTurboTrading

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* FAP Turbo has some high quality video tutorials that show you exactly how to set up all your screens. Very …

Duration : 59 sec

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Stock Market Technical Analysis S&P, Emini & Futures Breaking news. How would you like day trading the stock market for a living?
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I never could quite understand how the stock market works. Can anyone give me an easy-to-understand description. Pretend like you’re talking to a complete idiot because any technical terms will confuse me. I was also looking for a website where I can spend about $10 or $20 just to get a feeling of it. Also, is stock trading more of a long term investment, or can you make a regular income off trading stocks.

In simple terms

Company A needs money

Company A makes an Initial Public Offering (stock shares).

Investors buy stock shares and Company A makes a quick buck.

Investors then trade (buy and sell) their shares on the market to those who would like to own a piece of the company.

The increase and decrease of the price depends on those buying and selling shares. What are they willing to pay for a piece of the company and what are they willing to let it go for.

A good solid company who increases their profits year after year and future looks promising usually have stocks which increase in value.

A bad company who loses money every year and future looks depressing will decrease in value and eventually be gone.

To sum up….. the stock market is about predicting what investors will do in the future. Past performance does not guarantee future results. Remember this.

Is stock trading a long term investment? Hmm, we’re peeling and onion here, there are many layers on investing.

Regular income from stocks? Sure, find stocks that pay a dividend. Buy enough shares to live off the dividends.