Overview of stock exchanges for earnings on stock trading
What are stock exchanges and how can you make money with them? About this and much more in our article.
So, the stock exchange is a financial institution in which the turnover (sales and purchases) of securities occurs regularly. Most often, the stock exchanges create a turnover of goods (securities), their further repayment and create different ways of structural change of capital. For example, making a profit that is divided among shareholders after selling or buying securities.
Before you start making money on the stock exchange, you should understand how to do it exactly? The answer is much simpler than you think. The difference between the purchase and the resale of shares in the future is your profit. Accordingly, the first step will be the purchase of securities, and the second – their sale at a higher price (such earnings are called trading).
Stock Trading Strategies
There are several of the most important strategies that are used in the market when selling or buying stocks:
The minimum time interval in the transaction (measured in seconds).
A longer time to trade is day trading (from several minutes to several hours).
Making deals in a few days.
The strategy is short-term (duration is measured in weeks).
Deals that are made for several months.
Investment transactions – can last for several years.
Usually, starting to make money on the stock exchange, you need to contact brokers (intermediaries between the exchange and traders) for help.
Review of the largest US stock exchanges (NYSE, NASDAQ, AMEX).
Today stock exchanges on which it is possible to trade in shares, work all over the world. The largest among them consider the American marketplaces, namely:
NYSE (New York Stock Exchange) – New York Stock Exchange,
NASDAQ (National Association of Securities Dealers Automated Quotation),
These exchanges have a great impact on the life of the financial market of the entire globe. Let’s talk about each of them in more detail.
Nyse. The NYSE is considered the largest global trading platform. Its financial turnover is more than 50% of all investments in trading platforms. If we compare all the trading floors of the planet Earth, then here is the most invested shares. But in order to get to this site, the participant needs a starting capital of $ 1000.
The amount of earnings of traders on this exchange depends on how much time they spend and how it happens. Usually, starting to work in the NYSE, after six months, you can have a profit of $ 1000. Do not forget that there are no restrictions on earnings at the stock exchange, so your income will depend only on your desire.
NASDAQ. The NASDAQ American Stock Exchange was founded in 1978, now it is the largest electronic trading platform. It includes sales and purchases of shares of the most famous large companies and individuals. Usually these securities are associated with high technology.
To gain access to the NASDAQ auction, it is enough to conclude a contract with a broker. Sometimes trades can be conducted independently. Two ways to earn money on NASDAQ:
falling stock value
rising stock value.
AMEX is the New York Stock Exchange, which is now listed on the NYSE (after the merger of the stock exchanges). The trading rules are as follows:
the ability to enter the maximum reduction in stock prices,
saving the currency contributed for the guarantee while maintaining the positions (stock margin).
Previously, this marketplace rotated more than 10% of the securities of the United States.
In the end, it becomes clear that there is no single answer on how to make money on the exchange. Each trader should choose for himself the right tactics, determine how much time he will be engaged in investments and set a clear goal in the question of how much he wants to make a profit. The main thing here is an effort, a lot of patience and a great desire. Successes!