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Common stocks are tiny pieces of companies that are selling for a certain price. You, the investor, can choose whether to buy or sell your stock in a company. You ever watched shark tank? When the entrepreneur comes in and asks the sharks for a deposit of money and a percentage of their company in return, that is essentially what the stock market is doing, but on a much larger scale. This exchange is done through brokers, which are firms that are responsible for managing the exchange between the trader and the company. A shirt company, let’s call them company A asks you to buy a share of their stock at a certain price. Your bid is the amount you are willing to pay for shares of a stock. The second when the ask price, influenced by trading patterns, meets your bid, the order is executed. You now own a percentage of their company for a return on investment.You are now in something called a position, also referred to as “buy and hold,” which means the place you are currently in a stock. You bought a 40 shares of company A’s stock. Your position on company A is 40 shares of stock. Now, if you want to sell these shares, meaning you want to get out of your position, you will close this position.Now, there are two types of market trends that are very important when it comes to analyzing stocks: the bull market, and the bear market. When the market is bullish, it means prices are, on average, in an uptrend. If you were to look at a YTD chart of the S&P 500 in 2023, so far this year it is somewhat a bull market. Bear markets on the other hand refer to downtrends. You look at the 1Y chart for S&P and find out it went down almost 6% in the last 12 consecutive months. These types of markets should also influence your timeliness when it comes to buying or selling your shares of stock.First, lets look at the types of positions that we can go through.Buying Long: buying long essentially means you putting money in a stock expecting the price to go up.
Other platforms: https://bit.ly/m/BigMicPod
Common stocks are tiny pieces of companies that are selling for a certain price. You, the investor, can choose whether to buy or sell your stock in a company. You ever watched shark tank? When the entrepreneur comes in and asks the sharks for a deposit of money and a percentage of their company in return, that is essentially what the stock market is doing, but on a much larger scale. This exchange is done through brokers, which are firms that are responsible for managing the exchange between the trader and the company. A shirt company, let’s call them company A asks you to buy a share of their stock at a certain price. Your bid is the amount you are willing to pay for shares of a stock. The second when the ask price, influenced by trading patterns, meets your bid, the order is executed. You now own a percentage of their company for a return on investment.You are now in something called a position, also referred to as “buy and hold,” which means the place you are currently in a stock. You bought a 40 shares of company A’s stock. Your position on company A is 40 shares of stock. Now, if you want to sell these shares, meaning you want to get out of your position, you will close this position.Now, there are two types of market trends that are very important when it comes to analyzing stocks: the bull market, and the bear market. When the market is bullish, it means prices are, on average, in an uptrend. If you were to look at a YTD chart of the S&P 500 in 2023, so far this year it is somewhat a bull market. Bear markets on the other hand refer to downtrends. You look at the 1Y chart for S&P and find out it went down almost 6% in the last 12 consecutive months. These types of markets should also influence your timeliness when it comes to buying or selling your shares of stock.First, lets look at the types of positions that we can go through.Buying Long: buying long essentially means you putting money in a stock expecting the price to go up.
Other platforms: https://bit.ly/m/BigMicPod