Sunday, August 14, 2011

the New York Stock Exchange


The New York Stock Exchange is a place, where beginner investors can simply get lost. This is understandable if you hare not been informed through stock market lessons and understand how stock market works.

Once you know how the stock market works then you will understand that it is a place of great opportunity. Cynics out there have said that the New York Stock Exchange exists to facilitate the transfer of vast amounts of money from the uneducated to the educated. This to some extent may be true as over 80% of the worlds economy is traded at the New York Stock Exchange. This is why it is important to take every opportunity to take stock market lessons and become one of the educated investors. Use stock market lessons to understand different strategies so that you can profit in all market conditions. Once you have this more in depth understanding of how the stock market works you will be much more confident to invest money in the New York Stock Exchange and take opportunity of trading where the majority of the big financial players invest. There are so many options to invest in the New York Stock Exchange and it is such a liquid market that you can withdraw your money almost instantly.

There are many indexes to give indications of market conditions across different sectors. The main index is the Dow Jones Industrial Average or the Dow Jones, which is made up of the 30 top ranked companies. There is also the S&P 500 which makes up a broader list of 500 top ranked companies and the Nasdaq that is more related to technical stocks. The behaviour and direction of these indexes give beginner investors a rough guide of market conditions. There are also other indexes in other world stock markets which indicate how the economy is travelling in other parts of the world, for example in Australia there is the ASX200, in Japan the Nikkei 225, in the UK the FTSE 100, and in Hong Kong the Heng Seng. By monitoring the behaviour of these markets it gives a basic stock market lesson in investor sentiment, however the biggest driver of the world economy is the performance of the New York Stock Exchange as companies from all over the world are traded here.

Investors should not be afraid of investing at the New York Stock Exchange, once you get some basic stock market lessons and understand how the stock market works you can invest with confidence online in the market that is probably the strongest in the world.
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