How stock quotes can help in trading shares

Stocks have become quite a popular mode of investment in the present times. If you want to make profitable business in stock trading, then it is quite necessary to analyze the stock quotes. They are list of prices for a stock or share at a specific time during a trading day. Usually, the price of a stock is quoted by comparing the average growth of the price to earnings along with its market ratio.

Stocks are generally quoted in fractions; however, most of the stock exchanges use decimals to quote stocks. Stock quotes are usually available in real time or they are delayed by 15 or 20 minutes. It is entirely up to you how you want to follow the stock quotes. Depending on your interest, you can check it every second, every minute or once a day.

Newspaper stock quotes

If you’re trading stocks, then it’s quite natural that you’ll want to know how your stocks have performed during the day. You can very easily find the required information online or may check it from newspaper, the next morning. However, stock quotes are represented in columns and you need to understand the meanings.

Here is an explanation of some terms that will help you to know what the newspaper stock columns actually reveal.

  • 52-week HI and LO: These 2 numbers represent the highest and the lowest price that the stock has traded in the last 52-week period. However, these values don’t take into consideration the previous trading day.
  • YTD % CHG: It stands for Year-to-Date Percentage Change. It represents the change in the stock price percentage in a calendar year.
  • CLOSE: It represents the last price that a particular stock traded at a specific day. However, it doesn’t mean that the stock will open at the same price the next day.
  • NET CHANGE: It is a comparison of prices of a stock. By this, you actually compare what a particular stock closed at today to what it closed at the day before.

Online stock quotes

Apart from checking the stock quotes from newspapers, you can also check them from the Internet. It is quite easy to get stock quotes online; moreover, it is much more quick and convenient. Though you can get quotes throughout the day, yet most of the quotes in free Internet sites are delayed by 15 or 20 minutes. Usually, the data providers delay NYSE (New York Stock Exchange) quotes by 20 minutes and NASDAQ (National Association of Securities Dealers Automated Quotations) quotes by 15 minutes. This is because you need to pay a fee in order to view live quotes from these websites.

Therefore, be careful while trading on Internet stock quotes, especially when you’re trading in a fast moving market. It is advisable that you trade with live quotes as otherwise you may enter a trade when it’s going in the opposite direction.

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