Stock Market Basics

So let’s start off.

What we can speak about today is kind of go over the basics of the market now when people speak of the market they really mean a whole number of things we’re going to filter down to one concept that is in commonality what when most people speak of the market which is stocks so first of all to understand the stock market we have to break down what is stock and what is the meeting of stock so a stock is essentially an instrument which designates the ownership of a percentage of share of a company and this ownership shared can be traded between different people and thus they can become part of older ship of a company and by doing so they could to participate in the companies operations but what is more important from the perspective of the market and when people speak of the market is that stocks are one of the most primary methods and I was called instrument or asset class which are widely popular as and as an asset that can be traded now given the fact that they can be traded the attractive part of stocks is that the reason for people to speculate on stocks is that they are looking to buy at a cheaper price and sell it at a higher price and if it goes as planned will you make money and all you have to do is push some buttons in order for for you to trade that stock that’s simple part and a very kindergarten grade explanation of stocks or markets or trading in general now the big question is that when people say that the left to trade stocks or they like to trade the market what they’re really saying is that they would like to trade assets around and speculate on the on the value or the price of the assets and hopefully make money and make a living that way not given that it is not a surety that you will be able to make money in the market just because your trading training take skills just like any other skill the difference is that we trading the skill set is really amorphous and and kind of mysterious there is no straight guideline or recipe of success in the stock market there are some commonality some common characteristics or tactics a strategy or something to the nature that people can do in order to be more successful however whether what someone will be successful stock market are not the reason rationale for it is a kind of hard to pin down and the reason is ultimately trading depends on psychology and and the mental toughness and mental discipline those are things that that’s important beyond just be smart or knowledgeable or having a passion for the marketer passion with the doing so

So now the next part of the equation is to understand what it requires to be what it requires in order to be trader or or to speculate in the market if I can say one thing that’s most important is his depth and persistence and the willingness to be levelheaded at all times now what you mean by that think of the time that when you did something in your life and it was very haphazard it was very hectic and where you are in crunch time and you had to do something in a very small window of time an urgent matter in a matter of minutes or seconds that’s a decision had to do and had to make a decision fast so this situation is similar in that sense that you have to make these decisions but for a living so the most important factor is this how to stay under control and cool and collected when you’re making those decisions under pressure if you can do that on a consistent basis in your interaction with the market you will be successful what ever that you trade or speculate with stocks options ponds futures Forex or what have you.