Day trading strategies: the complete guide with all the advanced tactics for stock and options trading strategies. Find here the tools you will need to invest in the forex market
Download 1.65 Mb. Pdf ko'rish
|
BOOKS.YOSSR.COM-DAY-TRADING
- Bu sahifa navigatsiya:
- Stock Market Indexes
- Bullish and Bearish Markets
How Does The Stock Market Work?
A Stock market analysis definitely looks like gibberish to beginners and average investors. However, you should know that the way this market works is actually quite simple. Just imagine a typical auction house or an online auction website. This market works in the same way - it allows buyers and sellers to negotiate prices and carry out successful trades. The first stock market took place in a physical marketplace, however, these days, trades happen electronically via the internet and online stockbrokers. From the comfort of your homes, you can easily bid and negotiate for the prices of stocks with online stockbrokers. Furthermore, you might come across news headlines that say the stock market has crashed or gone up. Once again, don't fret or get all excited when you come across such news. Most often than not, this means a stock market index has gone up or down. In other words, the stocks in a market index have gone down. Before we proceed, let's explore the meaning of market indexes. Stock Market Indexes Market indexes track the performance of a group of stocks in a particular sector like manufacturing or technology. The value of the stocks featured in an index is representative of all the stocks in that sector. It is very important to take note of what stocks each market index represents. In addition to this, giant market indexes like the Dow Jones Industrial Average, the NASDAQ composite, and the Standard & Poor's 500, are often used as proxies for the performance of the stock market as a whole. You can choose to invest in an entire index through the exchange-traded funds and index funds, as it can track a specific sector or index of the stock market. Bullish and Bearish Markets Talking about the bullish outlook of the stock market is guaranteed to get beginners looking astonished. Yes, it sounds ridiculous at first, but with time, you get to appreciate the ingenuity of these descriptions. Let's start with the bearish market. A bear is an animal you would never want to meet on a hike; it strikes fear into your heart, and that's the effect you will get from a bearish market. The threshold for a bearish market varies within a 20 percent loss or more. Most young investors unfamiliar with a bear market as we've been in a bull market since the first quarter of 2019. In fact, this makes it the second- longest bull market in history. Just as you have probably guessed by now, a bull market indicates that stock prices are rising. You should know that the market is continually changing from bull to bear and vice versa. From the Great Recession to the global market crash, these changing market prices indicate the start of larger economic patterns. For instance, a bull market shows that investors are investing heavily and that the economy is doing extremely well. On the other hand, a bear market shows investors are scared and pulling back, with the economy on the brink of collapsing. If this made you paranoid about the next bear market, don’t fret. Business analysts have shown that the average bull market generally outlasts the average bear market by a large margin. This is why you can grow your money in stocks over an extended period of time. |
Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©fayllar.org 2024
ma'muriyatiga murojaat qiling
ma'muriyatiga murojaat qiling