Stock market

Stock market

How do stock markets work?

A stock market is a financial market where stocks and shares can be bought or sold. It acts as central place to bring stock brokers and traders together to conduct business.

For the most part, stock exchanges need no physical location: shares are now mostly traded electronically. The stock market enables companies to raise capital without borrowing money by issuing and selling shares.

Also see:

Trading & investing in shares

Both traders and investors buy and sell shares. Investors tend to hold the shares for longer periods of time than traders.

At tradimo, we want to be a great community for both investors and traders. In fact, we think that being a trader – and be it just on a small scale – helps you become a better investor. Similarly, being an investor helps you become a better trader, because the skills needed overlap and benefit each other.

A small example:

As a trader, you can learn how to identify market trends and reversals with the help of chart analysis:

Use support and resistance, trend lines, multiple time frame analysis and other elements of technical chart analysis to determine future price action.

Even if you mainly want to make long-term investments into stocks, this knowledge can help you buy and sell at the right times. Even if you are convinced of the long-term prospects of a company, you might be able to buy them for a cheaper price tomorrow.

Visit our forum on stock markets which features discussions about many public companies:

If you are looking for long-term investments into the stock markets, we can also recommend our forum on personal finance and wealth building:

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