This course is intended for beginner. Please spend an
hour or two to understand the basics
of stock trading.
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Understanding the stock market starts with understanding stocks. A stock represents partial ownership of a company – the smallest share possible.
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The term 'Stock Market' is commonly used to encompass both the physical location for buying and selling stocks
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Stock index is a statistical average of a particular stock exchange or sector.
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Stock prices are determined by investor confidence but that confidence in turn is based on real or perceived performance.
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Position Trading, Swing Trading, and Day Trading.
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Stock options are contracts to buy (or sell) a stock at a certain price before a certain time in the future.
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Stock trading has its own specialized vocabulary but once you have the basics under your belt you can understand better how the market works.
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Stock brokers handle most of the buying and selling on the stock market, and the average investor will use a brokerage service to handle his trades.
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Whereas stocks give investors part ownership of a company, bonds are loans made by investors to corporations or governments.
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A mutual fund allows an investor to take advantage of a diversified portfolio without having to invest a large sum of money.
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Penny stocks are low-priced stocks usually with a value of less than $5 of small companies.
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Today the Pink Sheets publishes quotations on the Internet, and most of its listings are so-called penny stocks.
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The goal of fundamental analysis is to determine how much money a company is making and what kind of earnings can be expected in the future.
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Technical analysis is the art and science of examining stock chart data and predicting future moves on the stock market.
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Bull and Bear are the terms to describe the general conditions of the stock market.
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A stock split is like receiving 2 five-dollar bills for a single ten-dollar bill. Same value – twice as much paper.
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The beginning investor is advised to investigate some of the basic trading strategies and see for himself how they perform.
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Stock trading signals are crucial for acting quickly on stock market movements.
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They're called Floor brokers and they're the one's who actually buy and sell securities on the floor of a securities exchange. You can watch them on TV waving their hands vigorously and yelling at one another...
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As Internet trading grew dramatically, companies developed systems allowing individual investors to not only trade, but access information once available only to those large companies.
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Apart from the general economic impact of regulations and direct taxation, bond rates (and interest rates generally) are one of the largest factors affecting share prices, outside of daily speculation.
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Stock picking is akin to weather prediction - no one can predict with certainty five hours from now if the price will rise or fall, much less five years from now...
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As with gamblers in Las Vegas so it is with stock investments, 'everybody's got a system'. The goal of research, however, is to make the activity a lot less like gambling and a lot more like investment...
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Probably you know by now that the big boys don't play nice. In the stock market, institutional and other investors with large sums have much more influence on events than the average trader...
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Every trade is governed by a set of complex regulations formed by the interplay between self-interested exchange members and the various government bodies overseeing their activities...
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The first thing to consider about investing isn't technical at all. EPS, P/E, P/S, MA and EMA, RSI and dozens of other indicators are all important. But start at the beginning by looking not outside, but in...
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Whatever your plan, having a healthy respect for research and a commitment to a well-thought out trading strategy is required for anyone interested in capitalizing on the growth of businesses far from home. Unless you just enjoy losing money...
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The question in the title might be a little unfair. After all, if share prices are inherently unpredictable (and in one sense, they are - more on that later), there's no answer...
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