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How to buy shares in the American Stock Exchange

The American Stock Exchange is one of the most important stock exchanges in the world, because the United States of America is the largest country on the economic level in the world, so the money market is affected by it, and in this article via the Money Makers website we review together how to buy shares on the American Stock Exchange.

American stock exchang

  • Some important information in the field of the American stock exchange must be known before buying shares, to know how to deal easily, and the most prominent of these information that must be known is the trading time on the American Stock Exchange, which lasts for 6 hours, starting from nine in the morning until four in the evening USA time.
  • Knowing that there is no maximum limit for trading on the stock exchange, while the minimum that can be traded on the American stock exchange is $500, and in order to ensure safety while trading on the American stock exchange, the person trading must rely on the major famous companies, and stay away from the companies unknown worldwide.
  • As for the always frequent question, is short-term investment better or long-term investment, the answer depends on the strategy that each person sets for himself while trading in the stock exchange.
  • Note that the account holder of less than 25 thousand dollars can only carry out three trading and speculation operations during one week, but if the account includes an amount exceeding this value, the person can trade and conduct speculative operations at any time during the trading period.
  • The commission of intermediary companies on the American stock exchange starts from $5, knowing that the person who trades in the American stock exchange does not have to be completely fluent in the English language, and the average proficiency is sufficient to be able to learn about the news of the stock exchange and stocks.
  • As for the prohibition of shares, the matter depends on the field of work of the companies through which shares are purchased in the stock exchange, if the company sells prohibited products, then trading through it is forbidden, and vice versa. 

Securities on the American Stock Exchange

  • Stocks: They are the ones that people trade in the stock market.
  • Bonds: It is a tool used by governments and institutions to finance their projects in return for a small risk and good returns for investors.
  • Choice Contracts: Putting down a deposit (a sum of money) to be used in future purchases and sales.
  • Mutual Funds: These are funds that are traded on the stock exchange.
  • QQQQ stock: a stock that represents one hundred of the largest companies in the field of technological development.
  • SPY stock: represents the price of the top 5,000 companies in the stock market.
  • SMH Stock: This stock refers to a specific type of company.

 The difference between buying and selling shares on the American Stock Exchange

  • Selling: The quantity to be purchased is determined and then a stop order is used, taking into account setting the selling price, so that it is higher than the offered share price. 
  • Buying: Determining the quantity to be sold, setting the sell stop order, and setting the price at which you wish to sell the shares. 

How to buy shares in the American Stock Exchange

In order to deal in the stock exchange and buy and sell shares in the financial markets, a person must follow a certain strategy of his own in the trading process, and these strategies are as follows:
  • Regular long buy: This strategy relies on a person buying shares at low prices and selling when prices are high. 
  • Short sell: When stock prices rise, and the knowledge that prices will fall again later, a person sells shares short, and buys again after prices drop, which leads to high profits.
  • Buying and selling option contracts: a person who works in the field of trading in the stock exchange puts an amount of money as a deposit to carry out buying and selling operations later, and this strategy includes Call, Put. 

The best trading companies in the US stock market

  • IC Markets company where a person deposits a minimum amount of one hundred dollars to trade through it, with a deposit bonus of up to 5 thousand dollars.
  • Pepperstone minimum deposit is $100, no bonus given.
  • Tickmill deposits a minimum of $5, with a deposit bonus of up to five thousand dollars.
  • Exness has a minimum deposit of $100, with a bonus deposit starting from $5,000 and up to that price. 

Tips when trading in the stock market

  • Investing in the stock exchange involves a large proportion of risk, so the person who trades in the stock exchange should not risk huge amounts of money that he cannot afford to lose. 
  • When you start entering the field of trading in the stock exchange, you have to buy local stocks, and then move on to buying international stocks.
  • A trader in the stock exchange must choose different types of investments, as buying shares from a specific company means that the person becomes one of its owners, and he will have a financial return like the owners of the company, and this may be good in the event of a high percentage of sales and profits.
  • The person who trades in the stock exchange must determine his goals and time, as the longer the investment period in the stock exchange, the higher the percentage of achieving high profits, so you should determine the time frame for investing in the stock exchange according to your needs and the material return that you want to achieve, either a long-term investment or short term.

At the end of the article on how to buy shares on the American stock exchange, we hope that we have provided useful information in the field of trading in the stock market and buying shares on the American stock exchange specifically, and waiting for your comments on the content, and wait for us soon in new and useful articles.