Stock trading is something often people assume is for professionals only. While it’s not wrong entirely, but that doesn’t mean you need to be a PhD or MBA to be a successful stock trader. Anybody who can count numbers and can do simple math can be an advanced stock trader with just a little bit of know-how and some training. Today we will learn some basics of stock trading 밤알바 which will help you in your journey of being a professional stock trader.
In this article, you’re going to learn the specific skills and strategies on how to trade stocks like a professional and how to achieve consistent profit so that you can create another income stream for yourself. Also, you’ll be able to grow your savings at a much higher rate of return and will reach your financial goals a lot sooner. One thing I can tell you that if you are committed to master the skill and start applying what you’ll learn into practice, very soon you’ll have a skill which is going to guarantee you an additional source of income for the rest of your life.
The definition of stock or share and what it means by owning stock in a company
Let’s assume you know nothing about the stock market or stock trading. So, let’s start with some fundamental things of stock trading. If you buy a share in Facebook, what are you buying is the right to owning part of the company and its profits. And before you buy a share or stock in Facebook, you probably have some questions in mind like, how many shares I need to buy or is Facebook shares are suitable for investment, etc. Facebook, for example, has 2.95 billion shares outstanding, that’s the total number of shares that are available in the market to buy. So, if you buy, for example, 295 million shares, you would own 10% of all the shares. What that means is you’ll own 10% of the company, and you’ll be entitled to 10% of all the profits. However, if you’re like most retail investors, you’ll not be able to afford that amount, correct? You’ll probably buy 10 shares or 100 shares or 1000 shares, or you can even start with as little as one share. Currently one Facebook share is priced at 170 USD, and of course, these prices change every single moment every single day. If you take the total number of shares of a company and you multiply that number by the share price of a single share or stock, you’ll get the total value of the company; which in this case is 501 billion dollars. This is known as the market capitalization of that company or market cap. So Facebook is one company, and there is a total of 7,000 companies listed on the US stock exchanges. The leading stock exchanges in The US are the New York Stock Exchange (NYSE), the American Stock Exchange and the Nasdaq Stock Exchange. A stock exchange is like a supermarket of companies where companies are on sale every day at different prices so every day you can go in through the stock market and buy shares of any company that you want; whether it is Facebook, Google, KFC, Alibaba, Coca-Cola, etc. Right now, with online trading, it’s very easy to buy and sell shares of companies. You can do it within seconds, and all you need is a stockbroker to execute the trade on behalf of you.