Trading stocks is easy with a computer and a connection to the Internet. You can buy, sell and trade stocks quickly, which reduces the risk of losing money. If stocks begin to fall, you can sell fast to protect your money. One simple way to impress your friends without risk is by providing interesting or useful information about the stock market. You can use information to guide your own investing or simply share facts with friends to impress them. Knowledge helps you minimize risk and take advantage of opportunities, so learning about the stock market and types of investments proves useful for both beginners and more experienced traders. Interesting information about stock trading includes the following seven facts:
1. SOES Bandits Trade Profitably NASDAQ once limited day trading to 1000 shares before the rules changed in 1996, but the exchange’s Small Order Execution System still allowed so-called SOES bandits to make profits with less information and fewer trades than investors have today.
2. Day Trading Currencies Day trading currencies is simpler than trading stocks, and you can start with less money than is usually necessary for successful stock trading. You need about $25,000 to day-trade stocks more often than eight times a week.
3. 16-year-old Beats Financial Experts Actor Rachel Fox, who is only 16-years-old, made big profits from investing in stocks. Fox beat the S&P 500’s 13 percent return by earning a 30.4-percent profit in 2012, and she had time to teach people online about investing while acting and going to school.
4. NASDAQ Information NASDAQ is short for the National Association of Securities Dealers Automated Quotation, and it was the first exchange to operate electronically when it was created in 1971
5. Dow Jones Details The Dow Jones Industrial Average is named for Dow Jones & Co, which was founded by two journalists: Charles Dow and Edward Jones. The company uses 30 American companies to track stock performance and has changed the companies it uses 48 times in 117 years.
6. Top Stock Exchanges The three largest stock exchanges in the world are the New York Stock Exchange, NASDAQ and BATS Global Markets. U.S. stock exchanges trade more than $250 billion daily, and electronic orders take only 200 microseconds before they are filled or recognized.
7. Why Halloween Is Important to Investors Nobody knows exactly why, but the Halloween effect describes the fact that the stock market does better between Halloween and May Day than it does the rest of the year. Stocks often perform poorly during the spring and summer months. All investments carry risks and possible rewards, and investors can choose from stocks, ETFs, bonds, mutual funds, real estate and physical commodities like gold and silver. Understand the risks before trading stocks or investing, and choose the right method for your ability to handle risk. However, you can enjoy unlimited bragging rights when you impress your friends with surprising facts about investing.