Stock Market 101 What are stocks? What is the stock market?

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Presentation transcript:

Stock Market 101 What are stocks? What is the stock market? How we react with the markets? Can I make a living of Trading the markets?

What are stocks? Stock Shares are a piece of a company that is available for sale (you are buying a percentage of the company). Companies sell stock shares when the company needs to raise money for their growth ventures. Before the stock shares are available to the public an IPO ( initial public offering) is published. During an IPO the price of shares are valued at the set base of the estimated value of the company and the company gets to keep the money they raised during the IPO to grow their business. the company then sells Its shares to be traded on an open exchange.

What are stocks? traders and investors buy and sell the companies shares, on the public markets to make a profit. Traders and investors buy and sell shares because after the companies IPO the companies financial value changes over time, causing the stock price to fluctuate. Investors and traders can loose or make money when the stocks price fluctuate.

Why does the stock market exist? the stock market is one of the most vital components of a free-market enterprise, as it provides companies access to capital in exchange for giving investors a percentage of ownership in the company. Job creation, wealth, and capitalism This allows our economy sustainability, grow, and progress. The stock market opened on Wall Street on May 17, 1792.

Market Exchanges Standard & Poor's 500 Index (S&P 500) tracks the performance of 500 widely held large-cap US stocks in the industrial, transportation, utility, and financial sectors. In calculating the changing value of this capitalization-weighted index, also called a market value index, stocks with the greatest number of floating shares trading at the highest share prices are weighted more heavily than stocks with lower market value. This can mean that a relatively few stocks have a major impact on the movement of the index at any time.

Market Exchanges Dow Jones Industrial Average is a price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York stock exchange. The dow, as it is called is a barometer of how shares of the largest US companies are preforming.

Market Exchanges Nasdaq Composite Index The largest electronic exchange in the world and the second largest exchange in the US. It was established in 1971 and was originally organized as a successor to over-the-counter/curb trading. Nasdaq has the highest trading volume of any exchange in the world, and a popular exchange for technology companies.

Market exchanges Russell 2000 Index is an index weighted for market capitalization of 2,000 small cap, publicly traded companies.

How we react with the markets? We react with the markets and take advantage of the volatility and price action. We are able to react based on price patterns, supply and demand, market conditions and market tone. We use technical and fundamental analysis to predict movements to time the market.

Playing both sides of the markets movement We buy the stock as it is going up. Sell it as it reaches our profit level or when the price starts changing direction. We short sale the stock, which mean we are making money as the stock price is crashing! Then when the crashing stock price turns around we cover our position which is buying it back and getting out of our position for profit. We don’t worry what the markets are doing! We react to both sides of the move and make money both ways!!!

Take control of your financial future Why rely on someone else to manage your finances? Do you trust this person with your money? Is this person capable of what they say? 90% of hedge funds loose money. We are here to take control of our finances. We are not the classic buy and hold “investors”. we react to price actions, allowing us to make money daily.

How do I take control of my financial future? 1.) educate yourself: Learn how to create wealth through our study content. 2.) Join community: Join the community that wants to work by your side and succeed together. 3.) Take action now: Don’t wait any longer, now is the best time.

Can the stock market provide income? Absolutely! The possibilities are endless The stock market is available to everyone, but only the educated succeed. The stock market is not a hard thing to understand or conquer. With a handful of rules and guidelines you also can become a success story.

About us Amg Trading and investments is a community that will provide education and support. We work together to succeed. We strive to make a minimum of 15% - 100% per day trading. This is not a get rich over night scheme but we believe working together in our community provides the best opportunity for financial freedom.