Home
Best Selling
Ebooks
Pick Best stocks
  My trading blog
FREE newsletter
  Stock chart analysis
Stock chart patterns
Trading strategy
Trading system
  Best online brokers
Stock trading books
Stock trading journal
Trading software
Trading education
  ETF Trading
Commodity ETFs
  Active investing
Ways to invest
  My trading tips
Stock screeners
Daytrading
  About Me
Contact me
Questions ?
Disclaimer
Privacy Policy
SEARCH THIS SITE
  MEMBERS AREA
MY SERVICES

Stock market basics

how the stock market works

Stock market basics for traders and stock market investing basics for investors are necessary for everybody who wants to make money in the stock market.

People have asked me, “What is important stock market know-how?”

To be honest, I have to say that I’m not sure what is absolutely necessary to know about stock markets to be profitable. That’s why I’m open to every new piece of information I can find.

My current idea is that it is not necessary to have a lot of information to be successful trader or investor.

Do not try to learn everything

What I learned during my stock trading career is that it is not absolutely necessary to understand everything on stock market. It is very hard to know all about how the stock market works.

It is also very complicated to try to absorb every information available about trading, about economics about current situation in world etc.

So I finally recognized that much better way how to work with financial markets and generate profits is to keep it simple. Avoid to be overwhelmed by amount of information available today. Try to use only basic trading and analytic tools for your trading or investing needs.

How the stock market works ?

Some time ago, I found one book. I started to read it, and it I discovered that it’s a super book to learn stock market basics. This book describes everything about stock markets: how they work, who’s involved in trading on stock markets, how orders work, what is a market maker, what are typical frauds in the stock market, and much more.

The name of the book is Trading and Exchanges.


Here is short description from the contents:

  1. The structure of Trading
    Basics about trading industry, market structure and brokers
  2. The Benefits of Trade
    Why people trade
  3. Speculators
    Speculators on markets and what they do ?
  4. Liquidity Suppliers
    Dealers, Bid/Ask, Block Traders and much more
  5. Origins of Liquidity and Volatility
  6. Evaluation and Prediction
  7. Market Structures
    Indexes, Portfolios, Specialists, Internalization, Floor Trading,Automated Trading, Bubbles and Crashes

I like this book very much and recommend it to everybody. Be prepared to learn a lot. The book is long, so it will take time to read .

You can buy it on Amazon.





Return from Stock market basics back to stock market trading tips



Follow me on...


How to Select the Best Stock
& ETFs Using
3 Simple Methods


AMIBROKER is good stock analysis software for stock traders



TRADING DIARY PRO

best stock trading tool for stock traders and investors