Stock Exchanging

One of the most asked questions for beginning stock exchangers is "When do I know when to buy and sell? This question can be answered by simply being clever, and knowing when people generally sell his/her stock. A good strategy for this is to realize that bad news is generally shared over the weekend on news channels, so people will sell stocks because of the bad news, making the stocks cheaper. (SEE VIDEO BAD NEWS) Another way to know when to buy and sell is hype. Hype is the keyword. For example, if Apple were to announce a new product, people would get excited and buy Apple's stocks. So, buying stocks months beforehand is a good strategy because when the product is released and people buy, the value will rise. (SEE VIDEO HYPE)

Bonds, simply put, are loans of money to a company or government that is paid back to the lender with interest.

Another strategy in the stock market is called "shorting" a stock. This is a strategy to use if you think a company's stock value is going to plummet. Here is an example: you think a company is falling, so the value of the chosen stock is $10, so you are lent that money. Later, the value is $3. You pay back the $3 and keep the difference of $7. (SEE VIDEO SHORTING A STOCK)