How To Trade Stocks: Basics For Novice Traders
Do you know that the two largest stocks in the globe are placed in the US? The Nasdaq Stock Exchange and New York Stock Exchange list the world’s most famous enterprises such as Apple, Facebook, and Google.
The ability to join and trade these stock markets has never been more accessible than it is now, and this is one of the reasons why people around the world are eager to learn how to trade stocks. In this article, we will tell you how to trade stocks, what affects the price movement, and how to invest beneficially today on the US market example!
What is the US stock market today?
The US stock market is now essentially an auction where traders purchase and sell shares of public enterprises. The stock market is controlled and managed by the relevant exchange. For example, the US market is formed by the world’s two biggest exchanges – the NYSE and the NSE. They help organize the trading of shares of public companies such as Amazon, McDonald’s, Nike, Walmart, trade options, etc.
The overall value of the American market fluctuates every day depending on the number of transactions (over $30 trillion). These calculations were made on the basis of US stock market data for all enterprises traded on stocks.
What is the US stock market index?
Since the US market has a wide range of enterprises from various sectors, exchanges have created a range of US stock indices to help economists, fund managers, journalists, and traders identify parts of the stock market. For example, here are 3 US indices that are the most recognizable ones, and each of them has a specific focus:
–The S&P 500 – The index displays the value of the 500 biggest enterprises traded on the NYSE and is perceived as the key index of the whole US stock market.
–Nasdaq 100 – It measures the value of the top 100 companies traded on NSE. It generally includes tech-related enterprises and does not have commercial or investment institutions. This index is perceived as the key one in the US technology sector.
–Dow Jones 30 – It was developed to follow the performance of the US stock market in 1896 when data on individual enterprises was limited. The purpose of the 30 stocks listed in the index is to reflect the dominant sectors that “build” the US economy.
Now let’s see how to invest in the US stock market.
How to trade US stocks online?
If you want to learn how to trade US stocks, here are the things you need to know to get started:
– How to buy US stocks? If you want to buy shares of a certain company, you need to find someone who owns them and is willing to sell them to you. This is what your broker does. Through the trading platform, this intermediary routes your buy and sell orders to other buyers and sellers.
– How to access US stock market data? Your trading platform will help you access the important information you need for trading. This includes US stock market news, charts, and prices of various US public companies.
– Why do you need a schedule? Creating a trading schedule while analyzing the US stock market can help you make quality trading decisions. If you know exactly when you will be trading, you can give it your full attention. Both exchanges open at 9:30 a.m. and close at 4:00 p.m. New York time from Monday to Friday.
How to buy US stocks?
It is quite simple, for this you only need to follow the below steps:
– Open your trading platform;
– Open the Market Watch section;
– Right-click in the Market Watch window and select Symbols: the window below will open, listing all the markets available for you to trade;
– You can now left-click on one of the symbols you want to view and drag it onto the chart to view the US stock prices for the symbol you selected;
– Select New Order.
You now know how to buy US stocks and join the market. Keep learning to reveal the potential of this business and make your first profit!