How to Trade on the New York Stock Exchange
Everyone has a chance to become the ‘Wolf of Wall Street’. And it's not merely about money: the New York Stock Exchange is open to investors and traders from all over the world. The European countries are no exception. Of course, you can only operate on the NYSE (New York Stock Exchange) through a broker, but you are free to select your own financial instruments and decide how to apply them.
Unlike the 100% electronic NASDAQ exchange, NYSE has a mailing address, and the trade is monitored by real people - specialists, brokers, registered traders. The exchange is open on weekdays - from Monday to Friday - and operates from 9:30 to 16: NYC time. The difference with London is 5 hours. This means that for European citizens trade begins in the afternoon.
The New York Stock Exchange time schedule is convenient for traders: they do not need to sit all night through monitoring the news. You can start early, before the opening of the auction. Or combined it with trading on European exchanges. It will be convenient for investors with packed working schedule: you can follow the quotations after arriving home in the evening and buy shares at the best possible price.
What is on trade on the New York Stock Exchange?
Well, all types of existing securities. Here the world’s largest corporations place their shares. But, unlike NASDAQ, originally specializing in IT companies, NYSE is focused on industry. However, nowadays manufacturers are not the only ones represented here. And not only American companies: European and Asian companies are listed on Wall Street as vouchers or shares of their head offices.
Of the 2,800 companies’ securities enlisted on the New York Stock Exchange, the major are shares of start-ups and blue chips. A startup can give a huge profit, but it's a risky investment. Blue chips are produced by large, stable companies, be it Facebook, Google or Coca-Cola.
The New York Stock Exchange market indexes
After seeing ‘The Dow-Jones Index Has Dropped’ headline you might be in a hurry to sell the shares listed on Wall Street. And it will be a mistake. The indexes do not reflect the state of the exchanges themselves. This is an instrument for conducting analyses of the quotes of certain groups of securities.
The most famous indexes on the NYSE are:
- Dow-Jones (quotes of 30 largest US companies);
- NYSE ARCA Tech 100 Index (stock quotes of technology-related US companies);
- NYSE Composite (quotes of all securities traded on the stock exchange).
How to start trading on the New York Stock Exchange?
The New York Stock Exchange website (nyse.com) will allow you to track stock quotes and indexes, show the basics of trading, but it will not provide access to the trading instruments. You have to find a broker first.
There is no barrier to entry, although many talk about several thousand and tens of thousands of dollars. This is not true. The size of your capital can be less than $1000, the limit is determined by the broker only.
To enter the NYSE, you just need to select shares traded on the stock exchange, conclude an agreement with the broker and deposit money. You will be able to manage the securities to your liking.