| Let's start with a definition. According to The Motley Fool's You Have More Than You Think, a ticker symbol is "an abbreviation for a company's name that is used as shorthand by stock-quote reporting services and brokerages."
I located a useful web site for all of us novices, the InvestorGuide Classic Public Company Directory at http://www.investorguide.com/StockList.htm. Not only does this site list all publicly listed companies on the stock exchanges, but it also lists their ticker symbol. If you click on the title of the company it takes you to their web site (if available).
When you click on the ticker symbol, you are provided with a very comprehensive, categorized informational tool listing information about the company. What a nice resource. I've book marked this site for later reference, but for now, I did spend some time just clicking around on various companies that I recognized.
From what I've read, having a single letter of the alphabet as a ticker symbol is a very prestigious award. This makes sense to me - there aren't that many letters in the alphabet, after all! I found the following Salt Lake Tribune newspaper article that is a fun, brief overview of ticker symbols and why some companies select these acronyms. http://www.sltrib.com/1999/jan/01101999/business/73545.htm.
And finally, I tried to take a look at that never stopping, continually moving ticker tape. I've spent over an hour trying to understand how to read that darn thing and what the ticks are and the volume and what the little "s" stands for. Anyway, I'm giving up…just for now. More on that later, when I have a little more patience. The moving ticker is at the web site of the NYSE at http://www.nyse.com/marketinfo/marketinfo.html?sym=TAN&x=4&y=8.
Okay Moms. Let's have some fun. Way back in November, when I decided I wanted to start learning about the stock market, I began by playing the Stock Market Game on E*Trade. I just jumped right in, using their $100,000 of play money to invest, without having a clue what I was doing. I had some idea of companies and their ticker symbols but most of my learning was through trial and error. I liked the anonymity of these "trading games" because I could learn at my own pace and nobody was watching me.
Since I now know buckets more than I did back then, I'm really anxious to give this another try. My first go-around in November was a real eye-opener for me. I picked my stocks and spent all my $100,000 in play money and at the end of the day…I had made $600!
Hey, not bad.
I left my stocks where they were and the next day, at the sound of the closing bell…I had lost $1,100!
Despite the fact that the money wasn't real, I nearly had a heart attack!
What a lesson I learned in just 24 short hours. I had to remind myself that it really was only pretend money and I also reminded myself that those people who "day trade" have nerves of steel and are the ultimate in risk takers. No thank you! My heart and my money couldn't handle the stress. I don't mind a little risk taking, but day trading is way, way out of my comfort zone.
So, let's play one of any variety and number of Stock Market Games that are found online as practice and look towards the long-term. It is amazing to watch the daily fluctuations of the stock market and how that translates into dollars earned or lost. I'll continue to follow my practice portfolio of stocks, but I will not let the short-term ups and downs, bother me.
Be aware that almost all of these stock simulator games ask for certain information from you. Be sure to check out several, and pick one based on the information you're willing to provide to them.
Also note that many of these games include a pretend "transaction fee" for each trade you make, similar to what you would pay if you were actually buying and selling stocks online. When you finally do invest your hard-earned money, it is important to take into account the real transaction fees which are charged for any buys and sells. I believe that the stock market games include this to simulate exactly what would happen with a web broker.
Just a quick reminder: these games are free! There is no charge to participate, so use them to learn as much as you can. Also be advised that companies similar to E*Trade may follow-up, through snail-mail, with additional promotional items and brochures about their company.
I've found from previous experience that this is a "hands-on" opportunity to increase my feelings of safety when it comes time to invest my own money. When I'm actually watching my own investment dollars, I'll at least feel better, knowing that I took the time to learn and understand how online trading works.
Next week I'll report on free online portfolios that allow us to set-up and monitor our stock picks.
Thank you for joining me
Joyce |
