Podcast
Questions and Answers
What is the primary focus of trading compared to investing?
What is the primary focus of trading compared to investing?
Which of the following best defines 'blue chips' in stock market terminology?
Which of the following best defines 'blue chips' in stock market terminology?
What does a 'bull market' indicate in terms of stock prices?
What does a 'bull market' indicate in terms of stock prices?
What is the term for companies with lower market capitalization?
What is the term for companies with lower market capitalization?
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Which term is used to indicate the selling price of a stock?
Which term is used to indicate the selling price of a stock?
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What does 'price appreciation' refer to in the context of stocks?
What does 'price appreciation' refer to in the context of stocks?
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Which of these describes a 'bear market'?
Which of these describes a 'bear market'?
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What does 'bid' refer to in stock trading?
What does 'bid' refer to in stock trading?
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Study Notes
Stock Market Trading Overview
- The presentation is a masterclass on stock market trading, by Benneth A. Aloyon, MIT, Dean/Executive Consultant.
- Topics covered include differentiating investing from trading, types of trading and stock market overview, trading plan setup and execution, trading edge and three essential elements.
Investing vs. Trading
- Investing: Focuses on productive assets (stocks, real estate, businesses) and fundamental analysis, aiming for passive income over medium to long terms (years).
- Trading: Focuses on zero assets (forex, crypto, options, futures) and technical analysis, targeting active income in short terms (months, weeks, hours, minutes).
Basic Stock Market Terms
- Blue Chips: Top 30 biggest companies.
- Boardlot: Minimum number of shares, a bundle.
- Dividend: Company profit distributed to shareholders.
- Price Appreciation: Stock price increase impacting value.
- Penny Stocks: Companies with low market capitalization.
- Stock Code: Company symbol listed on PSE.
- Bid & Ask: Bid is buying price; ask is selling price.
- Bull Market: Stock prices expected to rise, higher demand.
- Bear Market: Stock prices anticipated to fall, higher supply.
- Trend: The direction of stock price (uptrend, downtrend, sideways).
- Portfolio: Collection of stocks or investments owned by an investor.
- Last Market Price: Current price of the stock.
- Quote: Information on the stock's latest price.
- Unrealized Gain/Loss: Change in stock value, but not yet realized from a sale.
- Resistance: Ceiling where selling pressure occurs.
- Support: Flooring where buying pressure occurs.
- Overbought: Potential price pullback.
- Oversold: Potential reversal or price recovery.
- Indicator: Technical tools for interpreting price action.
- Volume: Number of shares traded daily.
- Volatility: How quickly market prices change.
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Description
Explore the fundamentals of stock market trading in this masterclass presented by Benneth A. Aloyon from MIT. Learn about the distinctions between investing and trading, key trading strategies, and essential stock market terminology to enhance your trading endeavors.
