{"id":7319,"date":"2020-05-10T09:03:18","date_gmt":"2020-05-10T07:03:18","guid":{"rendered":"https:\/\/learnfxtrading.net\/app\/?p=7319"},"modified":"2020-05-10T09:03:20","modified_gmt":"2020-05-10T07:03:20","slug":"trading-the-u-s-markets","status":"publish","type":"post","link":"https:\/\/learnfxtrading.net\/app\/trading-the-u-s-markets\/","title":{"rendered":"Trading the U.S markets"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\"><strong>Is there a difference between stock market and Forex market<\/strong>?<\/h4>\n\n\n\n<p>Before I get into the <strong>U.S markets<\/strong>, I thought I should start by answering the question above . There is a difference between those two. Back in 2015, I published a blog post describing the differences. You can read this post <a rel=\"noreferrer noopener\" href=\"https:\/\/learnfxtrading.net\/forex-and-stock-market\/\" target=\"_blank\">HERE.<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What is stock index trading?<\/strong><\/h4>\n\n\n\n<p><strong>Stock index <\/strong>trading is when you are trading a basket of <strong>stocks <\/strong>which makes up an <strong>Index<\/strong>. You can do that on your <strong>Forex<\/strong> trading platform and do that through an instrument.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Advantages of <\/strong>trading stock indices<\/h4>\n\n\n\n<ul><li><strong>Stock indices<\/strong> have generally higher returns than the stock market they represent.<\/li><li>The&nbsp;<strong>Volatility<\/strong>&nbsp;is reduced as compared to <strong>currencies<\/strong>.<\/li><li><strong>Stock index<\/strong> trading requires less research as opposed to trading \/investing in <strong>individual stocks.<\/strong><\/li><li>When trading <strong>stock index<\/strong> e.g<strong> Nasdaq<\/strong>, you do not have to spend weeks analysing all the companies under this umbrella but all you can do is just follow&nbsp;the instrument&nbsp;as you would do analysing your <strong>currencies.<\/strong><\/li><li><strong>Stock index trading<\/strong>&nbsp;does not require any traditional stock<strong>&nbsp;brokerage<\/strong>&nbsp;where you pay high fees, you can&nbsp;<strong>buy<\/strong>&nbsp;and&nbsp;<strong>sell<\/strong>&nbsp;on the same <strong>Forex <\/strong>trading platform as you would do with your&nbsp;<strong>currencies<\/strong>&nbsp;and it is cheaper.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Stock trading<\/strong><\/h4>\n\n\n\n<p>You are trading&nbsp;<strong>stocks<\/strong>&nbsp;of specific companies, and each company has its own price. Once you bought, you own a <strong>stock<\/strong> and it has to be transferred by the seller.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>U.S markets<\/strong><\/h4>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong><strong>1.Nasdaq<\/strong><\/strong><\/h4>\n\n\n\n<p><strong>Sector: Technology.<\/strong> Nasdaq stands for <strong>N<\/strong>ational <strong>A<\/strong>ssociation of <strong>S<\/strong>ecurities<strong> D<\/strong>ealers Automated<strong> Q<\/strong>uotation. Nasdaq comprises of        100 companies listed on the stock exchange in the United States This is one of the popular one&#8217;s amongst traders.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>2. Dow Jones<\/strong><\/h4>\n\n\n\n<p><strong>Sector: Industrial<\/strong>. <strong>Dow Jones<\/strong> also known as the <strong>DOW<\/strong>, is the <strong>stock index<\/strong> that measures the<strong> stock<\/strong> performance of 30 large companies listed on the stock market in the <strong>United States.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>3. S&amp;P 500<\/strong><\/h4>\n\n\n\n<p><strong>Sector: Financial<\/strong>. The <strong>S&amp;P 500 <\/strong>index measures the<strong> stock<\/strong> performances of 500 large companies that are listed on the <strong>stock exchange<\/strong> in the <strong>United States<\/strong>. The<strong> S&amp;P<\/strong> market cap is 70 to 80% of the total <strong>US stock market<\/strong> capitalisation. It is a commonly used benchmark for <strong>stock portfolio<\/strong> performance in <strong>America <\/strong>and abroad.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What economic indicators affect these 3 Indices<\/strong><\/h4>\n\n\n\n<p>The method of trading that I personally use, focuses more on <strong>fundamental analysis<\/strong>. Fundamental analysis is all about understanding the reasons why certain things happen in the <strong>markets<\/strong>. <strong>Economic data<\/strong> releases such as <a rel=\"noreferrer noopener\" href=\"https:\/\/learnfxtrading.net\/u-s-consumer-price-index-2020-dates\/\" target=\"_blank\">Consumer Price Index<\/a> <strong>(CPI)<\/strong>, <strong>employment <\/strong>data, <strong>GDP<\/strong>, <a rel=\"noreferrer noopener\" href=\"https:\/\/learnfxtrading.net\/what-is-a-trade-war\/\" target=\"_blank\">trade wars<\/a> and the <a rel=\"noreferrer noopener\" href=\"https:\/\/learnfxtrading.net\/fomc-2020-dates\/\" target=\"_blank\">Interest Rates <\/a>are some of the key indicators in trading these indices. I cannot share these in detail over a blog post but I hope you have learned a thing or two about stock Indices. Thank you so much for stopping by and reading this post. kindly share with anyone who maybe in need of this content. Your shares are always appreciated.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is there a difference between stock market and Forex market? Before I get into the U.S markets, I thought I should start by answering the question above . There is a difference between those two. Back in 2015, I published a blog post describing the differences. You can read this post HERE. What is stock [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":6829,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[7],"tags":[292,293,294,295,297,296],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/learnfxtrading.net\/app\/wp-content\/uploads\/2020\/04\/william-iven-dAmHWsRYP9c-unsplash-scaled.jpg?fit=2560%2C1700&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/pbXWFt-1U3","_links":{"self":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts\/7319"}],"collection":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/comments?post=7319"}],"version-history":[{"count":12,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts\/7319\/revisions"}],"predecessor-version":[{"id":7331,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/posts\/7319\/revisions\/7331"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/media\/6829"}],"wp:attachment":[{"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/media?parent=7319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/categories?post=7319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learnfxtrading.net\/app\/wp-json\/wp\/v2\/tags?post=7319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}