How to Trade Stocks - General knowledge

Hey I'm Tyler and we will be going or the basics of the stock market i'm going to start off with the stock market general knowledge but first a disclaimer we don't trade commodities, bonds, currencies, or options, we just trade common stock which is also called securities this link here will give you a little bit of history about the stock market how it came about and how it works one of the major united states stock markets is called the new york stock exchange also native is n_y_s_e_ let's go over some important definitions to get you up speed Bull Market it's a market that is going up or is expected to go up. Usually a bull market last about two to four years, but it's possible to go longer bear market the market that is going down or is expected to keep on going down. A bear market can last for about six months to two years I_P_O an initial public offering, this is when a company decides to be publicly traded on the stock market IPOs are usually volatile or erratic so you should stay away from them an index is a statistical measure of the market is basically a measure of how the market is doing as a whole there are many indexes out there. The two i usually follow are the S&P500 and the NASDAQ when actually looking at the stock market there are three numbers that determine the price of the stock. there's the last sale which is the most recent price a stock traded at. There's the bid which is the highest price a buyers willing to pay for a stock and then there's the ask which is the lowest prices someone's willing to sell the stock for there too common with buying stock there's a limit order, which is when you want to buy or sell stock at a specific price and then there's the market order that is executing the best price you can find right now generally you when he's market order ninety five percent of the time for a couple of reasons using limit orders you are fighting over a couple pennies in the big picture and two, purchasing a sale orders will take a lot longer if it goes through at all Volume is the amount of shares that are traded in a stock in a specific amount of time the measured normally occurs daily that is the number of shares that are sold or bought one day normally there in the thousands or even millions, volume is a good indicator of how much interest people have in a specific stock if a stock is going up and there's a lot of volume then a lot of people are interested in it if a stocks going down and there's a lot of volume that generally means that people are trying to get rid of it Volume is a good indicator of a lot of other things. If the stock is going up slowly and and there's a lot of volume it means that there is interest but people aren't sure how high the price is going to go let's cover some general trading rules When I first started trading stocks i started out with about a thousand dollars I started looking at c_n_n_ money c_n_b_c_ routers and few other websites and took their advice to heart it didn't go well I losed it all in about a week, the lesson learned from this does do your research on your own. come up with your own rules and stick to them dont let somebody else tell you what to put your money into it penny stocks stocks that are worth less than a dollar per share they're generally not worth your time there are people out there and that make a lot of money on penny stocks but trading them is very risky we don't trade anything less than ten dollars. If the stock is worth less than ten dollars is generally to erratic. stocks that are worth over a few hundred dollars are usually much less volatile or erratic. but also don't change much percentage wise now losses one of our general rules zip there's an eight percent loss are more giver to the stock no matter what it isn't worth waiting around the seat them stock might go back up so you can make a money-back it is not worth it just sell it you can lose a lot more then like all of your money like about it but that being said there's a mindset you need to yourself into you have to set aside your mentions your feelings your culture dreams everything this isn't a game and this is an gambling no matter what uh... anyone else tells you adeptly can be came late but it shouldn't be is easily avoidable with research you can at least break even the market which is general knowledge and general he set for yourself did not have to go out there was a lawyer money like i did stock market isn't something you just or your money into an expected to get double it isn't going to happen without some effort overall don't best relations in the stock market make rules for yourself and stick to them at the rules are working refinement the research deftly takes up a lot of work there a lot of terms and concepts of the popular but we'll help you along the way d_p_s_ for example states for earnings per share but if you ask anyone to personal mystery *** p_s_ means into blank stare our next videos going to go over how the profile stocks a star research thanks for watching season