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Knowing the Stock Market

Updated on January 13, 2010

The stock martket is a game that could go two ways for someone, good or bad. While some people make millions of dolloars trading stock, some people have lost millions of dollars trading stock. The stock market is like a game, a real life game that can be really dangerous. Here are some things to consider when going into trading stock:

  • Ebooks- Ebooks are very informative when it comes to the related information to the topic of the book. Ebooks are filled with great information and could help many people out. But, can they make millionaire traders? The answer to that question is unknown. Many people "claim" that they used "special programs" to get rich in the market, but are they telling the truth? You can't go for a test drive in the stock market. Taking the advice of someone from an ebook could cost you dearly. Many people just want to sell their products to customers with exagerrated information. Can ebooks be trusted? Yes! Can stock market ebooks be trusted, obviously no! Maybe there is a book that you could trust out there, but are you willing to put thousands of dollars on the line?
  • Being strategic- Having your own personal strategy could be the big break you need. Making money is a must in this world today. The main goal of those stock traders is to make money.
  • Staying informed- Staying up to date with the stock market news could help your campaign well. Watch the news, stay online and research the stock market for any changes. Do whatever it is you have to do to get up to date with the stock market, in case an event happens. It could save you thousands, even millions of dollars.

Understanding the Fundamentals of Stock Market Investing Basics

This is in no way a plan to make money with the stock market, this is just the basics of investing in the stock market.

Basic Knowledge

What is a stock?A stock is a percentage of ownership of a company. When a company needs some extra money to grow their business, they will sell some or all of the company in the form of stock. So, if you were to buy 100% of the company stock, you would own the entire company. The stock market has made many great business men/women.

What is a share?An individual piece of stock. This piece of stock represents a very small piece of ownership of a company.

What is the DJIA(Dow Jones)?The Dow Jones Industrial Average is an average number of 30 U.S "blue chip" stocks. It's the most well known market indicator in the world. It was created in 1896 by Dow Jones & Company, Which happens to be a publicly traded company on the New York stock exchange (NYSE). They produce many important business publications such as The Wall Street Journal, Barron's, and several stock indexes.

What is a Nasqad?The Nasqad (national association of securities dealers automated quotation system) refers to two different things. The first is the largest electronic stock market in the United States of America. The second is

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    • easyspeak profile image

      easyspeak 7 years ago from Vancouver

      Great hub! I especially advices people to 'paper trade' otherwise known in recent times as trading on a demo account.