The Stock Market

The stock market is a collection of buyers and sellers of stocks. It is a representation of the ownership of enterprises. People make money by investing and owning a percentage of the firm. Like some successful stock speculators such as Warren Edward Buffett, Julian Robertson, James Simons, etc. people need to invest accurately in order to make a good amount of money from the stock market.

---

Common Senses In Stock

---

Types of Stock

There are two types of stock – common stock and preferred stock. Common stock is the most abundant form of stock in which there is one vote per share and dividends are not guaranteed. Preferred stock, on the other hand, is a fixed dividend, and may not include voting.

Ticker Symbols

All securities traded on the stock exchange have a ticker symbol. For example, Microsoft (MSFT), McDonald's (MCD), and Apple (APPL).

Markets

There are two types of markets – primary markets and secondary markets. Primary markets are where the stocks are created. Secondary markets are where investors trade previously issued stocks and companies are not involved in the buying and selling of their stock.

Exchanges

You can buy stocks on the Toronto Stock Exchange (TSX) or the TSX Venture Exchange (TSXV) in Canada.

Bull Market & Bear Market

The bull market is when the economy is great and stock prices are rising. The bear market is when the economy is deprived and a recession is looming.

---

---

Tips On Stock Trading

---

The Trend of Company Development

The development trend of a company is closely related to the company's stock market value. People can predict future stock growth by analyzing the company's industry and its past development trends.

The MACD (Moving Average Convergence Divergence)

By studying the MACD, people can determine the time to buy and sell. There are two lines in the MACD. One is called the DIFF (short term) and the other is called the DEA (long term). The most suitable time for buying a stock is when the two lines are parallel and on a rising trend to go above zero because this is when the stock’s value will rise.

Buy When Low and Sell At High

Warren Edward Buffett once said, “Whether it is socks or stocks, I like to buy high-quality goods when they are on sale from letter to shareholders.” When we buy stocks, we need to buy when the stock market is falling, and then find the right time to sell.

Studying the KDJ

The KDJ indicator, also known as the random index, is a technical indicator used to analyze and predict the changes in a traded asset’s stock trends and price patterns. It compares the highest price (K), the lowest price (D), and the closing price (J) of a period, which is about six months.

Written by 0

The Anonymous Helpers (TAH)