Introduction to Stock Market Trading

Level: Beginner · About 12 min · 8 slides

Stock trading means buying and selling shares (or options) of public companies on exchanges like the NYSE and Nasdaq, aiming to profit from price moves. This lesson covers why people trade, how the market works, how an order gets filled and settled, and the key ideas you'll hear every day in the room.

🔑 Key takeaways

• Focus on learning over earning. Education, practice, discipline.
• Shares trade on exchanges (NYSE, Nasdaq), and market makers provide liquidity.
• Your broker routes your order. Trades settle T+1 (one business day) since May 28, 2024.
• Regular hours are 9:30 AM–4:00 PM ET. Extended hours vary by broker.
• Indices (S&P 500, Dow, Nasdaq) show market health. Bull = rising, bear = down 20%+ from a high.

✅ Your homework

1. Open a paper trading account and place one practice market order and one limit order.
2. Write down today's S&P 500, Dow and Nasdaq moves at the close.
3. Find your broker's extended-hours trading times.
4. Pick 3 large, liquid stocks to follow this week.

📎 Resources

• SEC Investor Bulletin: the T+1 settlement cycle (investor.gov)
• SEC: Shortening the Securities Transaction Settlement Cycle (Rel. 34-96930)
• ADT Academy: https://americandreamtradingacademy.com