The Stock Market In The 1920's

Today’s very volatile market sparks fear into people's minds and troubles even the most successful people. The stock market before the 1800’s was not regulated and “stocks” were usually auctioned off. After the Buttonwood Agreement, which charged a commission to the clients, a primitive form of the modern stock exchange was created. Usually government bonds were traded although a few private companies also released stock to the public. Trading started off slow although it rapidly grew after the Civil War. The government in the early 1900’s had a laissez-faire approach towards the economy since it was booming in the roaring 20’s. What they did not know was the huge bubble that overvalued all the companies was on the verge of popping. The Great

Every time one’s stocks are checked, one should determine what to do: buy, sell, or hold. If one’s stock is down, but is confident then one should buy more. If one’s stock is down, but ise not confident then one should carefully sell. If one’s stock is up, but is confident then one should buy more. If one’s stock is up, but one’s goal has been reached then one should sell. After one masters the skill of basic trading, one should investigate further of advanced trading. There are many ways to sell such as trailing stops and limit orders. Trailing stops follow the stocks at a designated rate which one assigns then sells as the stock goes below. Limit orders set a designated price at which one wants to sell. Options are the way to go if one is a huge risk taker. Basically, one buys a 100 share contract from another investor for a premium. One gets to buy the stock at any price in a designated time frame. If the stock goes up or down to the predicted price at the end of the designated time frame, one can make a lot of money. If the stock is nowhere near the predicted price, one will lose their initial investment amount. Reading the news is crucial for macroeconomic trading. Many institutions invest using macroeconomics. Macroeconomics is the economy from a country level. For example, Saudi Arabia was sanctioned on their oil, now they are not. That’s why the oil prices are dropping since the demand for oil is low compared to the amount out there. The principles of supply and demand works in this situation. That’s why for the first time since 2003, oil has fallen below $30 a barrel. It affects all the gas companies such as Mobil and Chevron since they cannot profit off of selling oil to consumers. Therefore, it is very important to concern oneself with the global