Sunday, December 4th, 2016

Beginners Stock Trading: Understanding the Major and Minor Stock Indices

Do you know what a chip “blue” is value? What about the one “over the counter” stock is? You should. It is important to know the difference beginners stock trading. Overall, there is a difference in quality between the two. While there are other differences, traders tend to focus on just one of those classes of shares. Blue chip stocks are well-established actions. They include most of the brands ‘name’ that are in everyday life. They trade on major stock markets. AT & T, Coca-Cola, and Intel are examples of blue chip stocks. They are traded for “slow and steady” movements, with little risk. These are ideal for beginners stock trading. If you want to find more examples, a list of shares in the Dow Jones Industrial Average, or other major indexes (including the NASDAQ and S & P500). The 30 stocks in the Dow Jones list of quality are considered, pretty place (in essence, the blue chips). However, this does not necessarily mean they are the cream of the crop. A recent example of this is that GM went bankrupt, and now is not on the list of Dow Jones. So the word from the wise: research every stock you are interested in. In beginners stock trading, not investing blindly, simply because an action is a blue chip. One more of the actions against any population that does not trade is basically a large market (Dow, NASDAQ, etc.). These stocks can trade on the bulletin board “on the market or pinksheet” market. “Although these are in separate markets, stocks that trade in them can be very similar. Most people are more than counter-ups. These companies are in the process of growth and development of their businesses, hoping to ascend to trading one of the major exchanges. These stocks are considered at risk, as very few (if any) are well established. The draw is the fact that prices are fairly low, with many even trading below a cent. In addition, the price can move very quickly, allowing you to potentially grow your money faster than blue chip stocks. traders concerned should make a thorough investigation on these companies, as the commercial risk is high and not recommended for beginners stock trading. These two types of markets sit at opposite ends of the spectrum. The main markets tend to have well-established, low risk, medium return stocks. Meanwhile, smaller markets tend to house more startups that are high risk, high return. It is a “slow but sure” versus “make or break” environment. Research is definitely a must, with any market, as businesses succeed and not at the ends of the spectrum of market. beginners stock trading, knowing your risk tolerance is the key!

About the author Adam W. Porter is a successful investor, and has been trading stocks for over a decade. Adam is the owner of PowerfulStockTips. com, which offers stock tips and advice through a free newsletter. Learn more about Adam and register for your newsletter, visit PowerfulStockTips. com today.

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