Stock Market Trading Systems

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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.

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.

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

Technology stocks suffered, but financials stayed strong.

Duration : 5 min 4 sec

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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.

I ask because I can’t seem to understand how the stock market is going so great while the economy is in such a horrible state. The stocks are pushing 14,000 and the value of the dollar is getting less and less. The real estate market is hitting the dust. People are spending much more than they get. Foreclosures are running rampant. Unemployment is high.

Last time this kind of thing happen, we ended up in the Great Depression. The stocks were great. The Roaring 20s were full of partying and pizazz. The 30s? People were living in shacks because the stock market crashed.

Now, I may need to brush up on my history, but isn’t this pretty much how things went? I don’t think we’re far from the same ordeal. Even if we don’t hit a depression, things aren’t getting better. I know there’s an economic cycle, but it seems that we’re not rebounding into the positive side. I can’t see how things are going to get better.

For those of you business scholars out there, maybe you can help me.
I feel, though, that if we do hit another depression, it will be much, much worse than that of the 30s.

Your thoughts?

WOW,, I happen to agree with you 100%. I had to check and make sure it wasn’t me that wrote the question!

Realize that it is the DOW that is near 14,000.
The DOW is a tracking index of 30 (THIRTY) stocks.
It is "supposed" to indicate the strength of the market.
the S&P 500 is only 500 stocks….
There are plenty of stocks that have gone down or nowhere.

The falling dollar isn’t the worst thing for people who only buy things in dollars. Of course it will be expensive "in dollars" to travel outside the country or buy foreign made goods, but it isn’t good.

Real estate is only "hiting the dust" in certain markets, (the ones that were in a bubble) Many markets are just flat, a few are actually increasing. MOST Foreclosures are concentrated in 6-8 areas of the country.

National unemployment isn’t really that high, although certain area are bad.

That being said, You are RIGHT ON about the pre-1929 depression era.
When I tell people this they look at me like I am from the moon.

Realize that this economic cycle could continue for 25-50 years or more until the "big correction"
Your logic is EXCELLENT, it is not flawed.

It takes "suckers" to create a bubble, in any market.
Some people make fortunes at the expense of the suckers.

People have already forgotten the dot com NASDAQ bust of 1999-2000. Million dollar portfolios became $100K or less.

There are MILLIONS of people "investing" in the stock market through their IRA’s and 401K’s without understanding a thing about the stock market, just like they did in the 90’s and the suckers that bought houses in the hot markets after 2004. Some people got lucky and got out with nice profits.

Some people are or will be financially ruined because of their homes, but many will not.

If the stock market hiccups and people get scared, the run on selling could be beyond expectations, but as long as the "sheep" just keeping having a portion of their pay withheld and "invested" in the market blindly, you and I will be wrong….

The housing crisis in certain markets will continue another couple years (or longer) and may not recover, if ever.

Too many people in any market without really understanding the risks creates a crazy bubble. it’s happened before and WILL happen again.

Read and then read some more there are plenty of free quality resources available some are listed below:

In words that I will be able to understand, can anyone explain to me the correlation between the banks, the housing crisis, and the stock market. And how does the stock market affect the economy itself? I am just beginning to understand what the stock market is, so numbers and statistics are really not helpful.

Basically it comes down to this:

1. Banks loaned money or gave credit to so-called ‘high risk’ people who were less likely to pay their debts, hoping that they would run into difficulty and be forced to pay a higher interest rate on the loans and increase the profitability of the loan.

2. Instead of being able to pay when the interest rates increased, lots of these people were unable to continue to pay the higher interest payments, so they defaulted on their loans and were forced into bankruptcy.

3. The banks, who expected customers to keep paying the high interest, were faced with credit cards and loans that were losing money due to huge amounts of bankruptcy.

4. The banks had no money to loan to home buyers.

5. As businesses get into deeper credit trouble, they start laying people off in an attempt to cut costs. As they lose money, the stock market, which is basically a betting shop based on confidence in businesses, is filled with people selling their stock.

6. As the stock prices go down, the companies are perceived as being worth less. That means they will not be able to get loans as easily. In order to stop this, a company may lay off even more people in an effort to appear more profitable.

The result – people and businesses owe more interest than they can pay, businesses go under, the housing market collapses, banks go under, the stock market crashes, unemployment goes through the roof creating a vicious circle (i.e. even more people defaulting on credit and loans) that could have (and still could) result in a 1929-style crash.

If a buy a certain amount of shares in a stock and a sell when a profit is made then I make money? If a buy a certain amount of shares and the stock is negative do I owe money or can I leave the shares in the stock market? A bit confused?

Lets say you own 100 shares of XYZ stock and you paid $10 per share for a total of $1000 invested.

The next day the stock price is $11. Your next stock worth is now $1100. You made $100.

If the stock goes to $9, now your net stock worth of XYZ is $900. If you think the stock is good, you hold on to it, in expectation that the price will rise. You’re down $100 and this is reflected in the stock. Essentially, you’ve lost $100, but you do not owe that $100 to anyone.
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ok so i m a 11th grader and i would really like to understand about the stock market…stuffs like nifty and the arrow upwards and the arrow downwards and the bull and all that. i have to admit that i know absolutely nothing so i would like to know everything from the start. like a total freshmen. so can any1(if has the time and heart enough to) explain me everything or just give me some link to some site which can explain em everything i need to know!!!

this question made me laugh. first off visit your library and grab a few books.. anything wall street related. Equities are stocks. Futures. options. Currencies/ FOREX. take an economics class. watch the movie Wall St. Watch the movie Trading places. (futures markets)

mainly – start reading. get an internship. magazines – economist, forbes, trader monthly (discontinued). i work with commodities, so a bit different than the "stock market" but a market none the less.

have fun

Here are some books that will help
What Works on Wall Street by James O’Shaunessey
Beating the Street by Peter Lynch
One Up on Wall Street by Peter Lynch
The Warren Buffett Way by Robert Hagstrom
Trading For a Living by Alexander Elder
Mastering the Trade” by John Caster
How to Make Money in Stocks” by William O’Neil
The Disciplined Trader by Mark Douglas

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )
While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why. This site has some basic information for beginners. If any site offers free information, take it. Other website that can provide instructions and help with procedures and terminology are
Investopedia – http://www.investopedia.com/ Stock Charts – http://stockcharts.com/
Other – http://www.investorshub.com/ http://www.1source4stocks.com/

Visit some of the more professional websites like Zacks – http://www.zacks.com/
Smart Money – http://www.smartmoney.com/ Schaeffer’s – http://www.schaeffersresearch.com/
Some of these web sites will have advertisers who are worth looking into also.

Before you enter a trade or even think about opening an account you better be prepared or you will be eaten alive.

Before you start to trade make sure you have all of the following
1 – A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.
2 – Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest.
3 – A written money management program in place. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested.
4 – A full and complete understanding of the rules & regulations of the industry.