For Stock Market Investors
For Stock Market Investors by Gary Christenson – Deviant Investor
Guest Post from Ravinder Sahu
Know The Market Before You Invest
For anyone who is just getting into the game of investing, the markets can be overwhelming and confusing. It is important to know that you are not alone and you can learn it! Before investing money anywhere, know what is happening and how it can affect you in the long run. We take a look today at some basics to help you navigate the often befuddling world of investing.
Markets Close And That Is Important
Overall, the New York Stock Exchange (NYSE) and NASDAQ have operating hours of Monday through Friday from 9:30 am to 4:00 pm. Both NYSE and NASDAQ are located in New York City, so they are on Eastern Time. There are also stock market holidays and other calendar days to consider during which the trading floor is not open or closes early. What does it mean when they are closed? It means no more trading can happen. The floor brokers cannot purchase or sell any asset until the next business day.
The value of the assets can still change rapidly during closing, just no trading. This means that if a stock you invested in was dropping in value and the broker couldn’t sell it quick enough, you have that stock until you can sell it at the next trading session. Or you can’t purchase an asset that is a hot sale because it’s rapidly rising. This isn’t always a bad thing, the market changes rapidly and it could work in your favor.
I Don’t Understand The Exchange
Stocks are held on certain exchanges. NYSE and NASDAQ are just two exchanges we have already highlighted today. There are others in the country (such as American Stock Exchange and International Stock Exchange) and around the world (such as Tokyo Stock Exchange and London Stock Exchange). Stocks cannot be held on more than one exchange as that is the place where they are traded. It is literally a marketplace for buyers and sellers to come together and trade assets.
Know What You Are Investing In
Everyone is advised on which stocks to buy based on their value but really, you should be investing in stocks that you understand and want to support while gaining extra income. Purchasing stock is like giving the company money to own a share of it and you make income as the stock gains value which is often due to the profitability and success of that company. For instance, if you have a passion for metals and mining, it would be a no-brainer for you to buy those stocks because you would understand how successful it could be for you. Some people may buy stock in companies that they already support such as their cell phone carrier, their favorite department store, or a grocery store they shop at weekly. Others may choose to invest in specific markets such as cryptocurrencies or computer companies.