What Is Forex Trading?

More than half of all Americans have money invested in the stock market. They invest money in companies, called stocks, bonds, and mutual funds. Investors are using the stock market to create and manage wealth, to fund their retirements and save for a rainy day. At first glance stock market trading can seem overwhelming and complicated, but with the right advice, research, and analysis, any investor can be a "master of Wall Street", even when they live on Main Street. Stock marketing trading is simply the exchange of currency and capital for a share in that companies future growth, profit and earnings. When an investor buys stock in a company he or she gets a limited claim of that company's future earnings. As an investor purchase, more stock, his or her stake in the company, and the potential for higher earnings, grow. Profits are often paid out as dividends, and the more stockowned, the more dividends reaped.





Stock market trading occurs when investor decide to sell and other investor decide to buy that stock. When investors sell, they are looking to make a profit on their original purchase. Stock prices fluctuate daily, sometimes hourly, as a result of supply and demand. Economist call this the free market. If more investors want to buy a company's stock, the price goes up. If more investors sell the stock, the stock price falls. The price of a stock is reflective of what people- both investors and the general public- feel the company is worth. Earnings are the most reliable indicator of a company's potential growth, and the key to successful stock trading. Pay attention to a company's earnings. The earnings are the profit a company makes. Public companies (those traded on Wall Street) are required to publish their earnings quarterly. If a company is making more money than expected, stock price will increase. Alternatively, if the company made less money than projected, the stock price will drop. You may decide to buy stock when the price is low, because you are confident in future growth and earnings. Many investors buy stock using a brokerage firm. Full service brokerage firms offer research and analysis and manage the day to growth of a portfolio. They charge both fees and commissions. There are two types of brokerage firms to help you with stock market trading; full service and discount firms. Online brokerage sites and firms gives anyone with a bank account and some money to invest access to the There are a number of reputable on-line sites that can help you research the earnings history and potential of any company that interests you. Stock market trading is not only for the very wealthy. Anyone willing to accept a little risk has the opportunity to reap big financial rewards down the line. Whether an investor choses to invest with a full service brokerage firm, a discount form, or go it alone, there are a number of resources to help him or her get started trading and investing.