Dear readers

I’m Zane, official representative and the CEO at Solid ECN Securities. This is the topic made for the purpose of presenting our features, assisting traders and receiving their feedback in order to upgrade our services.

Solid ECN Securities is a team of experts with more than a decade of experience in trading, IT, and brokerage development. Gradually over the years, we collected priceless information about the market demands. We have learned how to safeguard and secure the trading environment on contracts.

It was in 2017, that we were determined to establish an independent hub to protect our accounts and trades. It was at that time we came up with the idea of Solid ECN Securities. We started with a self-developed platform, but due to the trading demands, the platform could meet our minimums only. Therefore, we stepped up and made it to the next level.

We formed the company and hired more experts to expand the Solid ECN brand worldwide. The pillar of the company is to provide secure trading without discrimination.


Sell Limit: 1850.46 | TP: 1819 , 1780 | SL: 1909

Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.


Buy stop: 162.2 | TP: 164.24,  165, 166.5 | SL: 159.59


Forex trading doesn’t take place on a regulated exchange (like shares or other assets do), as it occurs between buyers and sellers from anywhere in the world, through an over-the-counter (OTC) market. To be able to access this market, you need to use a Solid broker.

As this market is not centralized, you’ll quickly realize that you can access different exchange rates and trading conditions, depending on the broker you use. For this reason, choosing the right broker for your trading style is essential in becoming a successful Forex trader. It’s important to note that even if there are many brokers out there offering similar products and services, there are a few things you should check before deciding which one to use, to be sure you’ll be giving yourself the best chance to succeed.

You need to be sure it offers the right kinds of trading platforms and trading accounts for your trading style – not to mention other details such as trading conditions, spreads, minimum deposit, payment methods, main currency of the account, and the availability of the technical support.

Another very important thing to consider when choosing a broker is what type of broker that they are, as they are different kinds – predominately, Market Makers and ECNs.

Market Maker vs. ECN broker
Understanding the definition of a Market Maker is pretty straightforward – it’s a broker that “makes the markets” by setting the bid and the ask prices via its own systems. Then, they display these prices via their platforms, so that investors can open and close trading positions.

Usually, a Market Maker broker will not hedge its client positions with other liquidity providers like an ECN broker would do. Instead, what Market Markets do is they pay winning client positions out of their own accounts. It also means that when a client has a winning trading position, a Market Maker broker loses.

An ECN broker stands for Electronic Communication Network (ECN). Solid ECN provides its traders with direct access to other market participants via interbank trading prices. This network allows buyers and sellers in the exchange to find a counterparty of their trading positions.

Solid ECN uses different liquidity providers, we are able to allow prices from these providers to compete in the same auction, which usually means that traders get better prices and cheaper trading conditions. Moreover, by using an ECN broker, traders usually trade in a more efficient and transparent environment.

Solid ECN Securities makes money with the trading volume of its clients, charging a commission on each position.

5 (edited by SolidECN 2022-05-13 08:02:27)


Why you should trade with an ECN broker?

> Solid ECN broker doesn’t trade against its clients.
> Solid ECN broker is only the intermediary between your buying and selling orders, matching you up with different market participants.

Hence, Solid ECN broker doesn’t bet against you, which means that it never takes the other side of your trading positions. This trading model ensures you that there is no conflict of interest, as an ECN broker gets a commission whether you make or lose money.

Using an ECN broker limits price manipulation, increases transparency and provides better trading conditions. As an ECN broker doesn’t “make the market” by creating its own quotes, it is harder for it to manipulate prices, simply because it uses prices from different liquidity providers. With an ECN broker, you have access to real-live, current information, as well as more accurate prices history, hence why it is more difficult for this type of broker to manipulate prices. Displaying prices from official sources transparently in the Solid ECN trading platforms makes it easier for you to trade instantly, with tighter spreads than other types of brokers. Moreover, you usually get lower fees and commissions, as well as immediate confirmations.

Another benefit of accessing real quotes is that you avoid “re-quotes”, which can have a negative impact on your overall trading performance. This usually happens when your trading order is rejected because of the change in the price of the asset you want to invest in. Then, the broker offers you a “re-quote” of the given asset (which rarely works out in your favor).

As you can see, using us (Solid ECN) allows you to trade more efficiently and profitably, thanks to better trading conditions and better trading execution. With increased transparency and no conflict of interest, Solid ECN like MultiBank are the most reliable and safe way to trade.


Buy: Current price | TP 1: 1861, TP 2: 1900 | SL: 1785


A professional method to secure assets reasonably is diversified trading. Trading on limited numbers of instruments was never suggested by the market leaders and hedge funders. They always spread their investments among commodities, indices, and or currencies. Diversity is one of the many keys to having success in the trading world.

At Solid ECN, clients have access to trade the world with high leverage whilst the spread is tightened at its minimum. You can create your dealing basket to enjoy the product diversity with Solid ECN. We strive to offer our customers the most popular and trending products, and we made a live and long list of trading instruments.

As of writing the list contains 250 products including:

> Forex (Major | Crosses | Minor)
> Precious Metals (Gold | Silver | Palladium | Platinum)
> Energy (Brent | WTI)
> Indices (spot)
> Nasdaq
> EPA (Adidas | British American Tobacco | BMW | Airbus and more …)
> Cryptocurrencies (Cardano | Algorand | BNB | Dogecoin | Ripple and more …)


Trend-Following Tool
It is possible to make money using a countertrend approach to trading. However, for most traders, the easier approach is to recognize the direction of the major trend and attempt to profit by trading in the trend's direction. This is where trend-following tools come into play.

Many people try to use them as a separate trading system, and while this is possible, the real purpose of a trend-following tool is to suggest whether you should be looking to enter a long position or a short position. So let's consider one of the simplest trend-following methods—the moving average crossover.

A simple moving average represents the average closing price over a certain number of days. To elaborate, let's look at two simple examples—one long term, one shorter term.

The chart above displays the 50-day/200-day moving average crossover for the euro/yen cross. The theory here is that the trend is favorable when the 50-day moving average (in yellow) is above the 200-day average (in blue) and unfavorable when the 50-day is below the 200-day. As the chart shows, this combination does a good job of identifying the major trend of the market—at least most of the time. However, no matter what moving-average combination you choose to use, there will be whipsaws.


Solid ECN gives multiple account types on the MetaTrader 5 trading platform to help individuals and corporate customers to exchange Forex and Derivatives online.

All Retail, associates, and White-Label clients have the possibility to access various spreads and liquidity via state-of-the-art automatic trading platforms. Solid ECN grants an exceptional type of account options that clients can choose to experience a tailored trading experience that perfectly fills their needs.

United with excellent trading conditions and lightning-fast execution, Solid ECN provides all the tools and aids required for clients of any level to accomplish their trading goals.

Solid Micro, Minimum deposit $5, Leverage 1:1000, spread from 2 pips
Solid Standard, Minimum deposit $10, leverage 1:1000, spread from 0.3 pips
Solid ECN, minimum deposit $10, leverage 1:1000, spread from 0, commission per lot $3.


Understanding different stock types can benefit your portfolio
When most people think of stocks, they typically think of publicly listed shares traded on the stock exchange. However, it's important for investors to know the different types of stocks available, understand their unique characteristics, and be able to determine when they may represent a suitable investment. Below, we outline the various stock categories, aiming to take the confusion out of differing stock classes on offer to investors.

Common and Preferred Stock
Common stock—sometimes referred to as ordinary shares—represents partial ownership in a company. This stock class entitles investors to generated profits, usually paid in dividends. Common stockholders elect a company's board of directors and vote on corporate policies. Holders of this stock class have rights to a company's assets in a liquidation event, but only after preferred stock shareholders and other debt holders have been paid. Company founders and employees typically receive common stock.

On the other hand, preferred stock, or preference shares, entitles the holder to regular dividend payments before dividends are issued to common shareholders. As mentioned above, preferred shareholders also get repaid first if the company dissolves or enters bankruptcy. Preferred stock doesn't carry voting rights and suits investors seeking reliable passive income.

Many companies offer both common and preferred stock. For example, Alphabet Inc Google's parent company - lists Alphabet Inc. (GOOGL), its Class A common stock, and Alphabet Inc. (GOOG), its preferred Class C stock.

You can trade the common stock market at Solid ECN Securities.


Buy stop: 1.2864 | TP: 1.2915 | SL: 1.2778


Growth Stocks vs. Value Stocks
As their name suggests, growth stocks refer to equities expected to grow at a faster rate compared to the broader market. Generally, growth stocks tend to outperform during times of economic expansion and when interest rates are low. For instance, technology stocks have significantly outperformed in recent years, fueled by a robust economy and access to cheap funding. Investors can monitor growth stocks by following the themed exchange-traded fund (ETF), the SPDR Portfolio S&P 500 Growth ETF (SPYG).

Conversely, value stocks trade at a discount to what a company's performance might otherwise indicate, typically having more attractive valuations than the broader market. Value stocks—such as financial, healthcare, and energy names—tend to outperform during periods of economic recovery, as they usually generate reliable income streams. Investors can track value stocks by adding the SPDR Portfolio S&P 500 Value ETF (SPYV) to their watchlist.

Income Stocks
Income stocks are equities that provide regular income by distributing a company's profits, or excess cash, through dividends that are higher than the market average. Typically, these stocks—think utilities—have lower volatility and less capital appreciation than growth stocks, making them suitable for risk-averse investors who seek a regular income stream. Investors can access income stocks through the Amplify High Income ETF (YYY).

Blue-Chip Stocks
Blue-chip stocks are well-established companies that have a large market capitalization. They have a long successful track record of generating dependable earnings and leading within their industry or sector. Conservative investors may top-weight their portfolio with blue-chip stocks, particularly in periods of uncertainty. Several examples of blue-chip stocks include computing giant Microsoft Corporation (MSFT), fast-food leader McDonald's Corporation (MCD), and energy bellwether Exxon Mobil Corporation (XOM).

13 (edited by SolidECN 2022-05-24 07:55:38)


Cyclical and Non-Cyclical Stocks
Cyclical stocks are directly affected by the economy's performance and typically follow economic cycles of expansion, peak, recession, and recovery. They usually display more volatility and outperform other stocks in times of economic strength when consumers have more discretionary income. Examples of cyclical stocks include iPhone maker Apple Inc. (AAPL) and sports gear giant Nike, Inc. (NKE). Investors can add cyclical stocks to their portfolios by purchasing the Vanguard Consumer Discretionary ETF (VCR).

On the other hand, non-cyclical stocks operate in "recession-proof" industries that tend to perform reasonably well irrespective of the economy. Non-cyclical stocks usually outperform cyclical stocks in an economic slowdown or downturn as demand for core products and services remains relatively consistent. The Vanguard Consumer Staples ETF (VDC) provides exposure to large-cap defensive stocks like personal care giant The Procter & Gamble Company (PG), as well as beverage makers PepsiCo, Inc. (PEP) and The Coca-Cola Company (KO).

Defensive Stocks
Defensive stocks generally provide consistent returns in most economic conditions and stock market environments. These companies typically sell essential products and services, such as consumer staples, healthcare, and utilities. Defensive stocks may help protect a portfolio from steep losses during a sell-off or bear market. A defensive stock may also be a value, income, non-cyclical, or blue-chip stock. Telecommunications giant AT&T Inc. (T) and healthcare multinational Cardinal Health, Inc. (CAH) are among the defensive stocks included in the core holdings of the Invesco Defensive Equity ETF (DEF).

Defensive stocks are less likely to face bankruptcy because of their ability to generate consistent returns during periods of economic weakness.

IPO Stock
When a company goes public, it issues stock through an initial public offering (IPO). IPO stock typically gets allocated at a discount before the company's stock lists on the stock exchange. It may also have a vesting schedule to prevent investors from selling all of their shares when the stock commences trading. Market commentators also use the term "IPO stocks" when referring to recently listed stocks. Investors can monitor for upcoming IPOs through the Nasdaq website.

Penny Stocks
A penny stock is equity valued at less than $5 and is considered highly speculative. Although some penny stocks trade on major exchanges, many trade through the OTCQB—a middle-tier over-the-counter (OTC) market for U.S. stocks operated by OTC Markets Group.9 Investors should consider using limit orders when placing buy and sell orders in penny stock, as they often have a large spread between the bid and ask price.

Penny stocks shot to prominence in popular culture after the release of The Wolf of Wall Street, a movie about a former stockbroker who operated a penny stock scam. Investors who want to take a bet on penny stocks should look at the iShares Micro-Cap ETF (IWC).


They're easy to invest in, have low fees, and often perform very well

With a net worth of more than $82 billion, Warren Buffett is one of the most successful investors of all time. His investing style, which is based on discipline, value, and patience, has yielded results that have consistently outperformed the market for decades. While regular investors—that is, the rest of us—don’t have the money to invest the way Buffett does, we can follow his one of his ongoing recommendations: Low-cost index funds are the smartest investment most people can make.

As Buffett wrote in a 2016 letter to shareholders, “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds.”

If you’re thinking about taking his advice, here’s what you need to know about investing in index funds.

What Is an Index Fund?
An index fund is a type of mutual fund or exchange-traded fund (ETF) that holds all (or a representative sample) of the securities in a specific index, with the goal of matching the performance of that benchmark as closely as possible. The S&P 500 is perhaps the most well-known index, but there are indexes—and index funds—for nearly every market and investment strategy you can think of. You can buy index funds through your brokerage account or directly from an index-fund provider, such as BlackRock or Vanguard.

When you buy an index fund, you get a diversified selection of securities in one easy, low-cost investment. Some index funds provide exposure to thousands of securities in a single fund, which helps lower your overall risk through broad diversification. By investing in several index funds tracking different indexes you can built a portfolio that matches your desired asset allocation. For example, you might put 60% of your money in stock index funds and 40% in bond index funds.

The Benefits of Index Funds
The most obvious advantage of index funds is that they have consistently beaten other types of funds in terms of total return.

One major reason is that they generally have much lower management fees than other funds because they are passively managed. Instead of having a manager actively trading, and a research team analyzing securities and making recommendations, the index fund’s portfolio just duplicates that of its designated index. Index funds hold investments until the index itself changes (which doesn’t happen very often), so they also have lower transaction costs. Those lower costs can make a big difference in your returns, especially over the long haul.

“Huge institutional investors, viewed as a group, have long underperformed the unsophisticated index-fund investor who simply sits tight for decades,” wrote Buffett in his 2014 shareholder letter. “A major reason has been fees: Many institutions pay substantial sums to consultants who, in turn, recommend high-fee managers. And that is a fool’s game.” What's more, by trading in and out of securities less frequently than actively managed fund do, index funds generate less taxable income that must be passed along to their shareholders.

Index funds have still another tax advantage. Because they buy new lots of securities in the index whenever investors put money into the fund, they may have hundreds or thousands of lots to choose from when selling a particular security. That means they can sell the lots with the lowest capital gains and, therefore, the lowest tax bite.


A spread can have several meanings in finance. Generally, the spread refers to the difference between two prices, rates, or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond, or commodity. This is known as a bid-ask spread.

In finance, a spread refers to the difference between two prices, rates, or yields
One of the most common types is the bid-ask spread, which refers to the gap between the bid (from buyers) and the ask (from sellers) prices of a security or asset
Spread can also refer to the difference in a trading position – the gap between a short position (that is, selling) in one futures contract or currency and a long position (that is, buying) in another

Understanding Spread
Spread can also refer to the difference in a trading position – the gap between a short position (that is, selling) in one futures contract or currency and a long position (that is, buying) in another. This is officially known as a spread trade.

In underwriting, the spread can mean the difference between the amount paid to the issuer of a security and the price paid by the investor for that security—that is, the cost an underwriter pays to buy an issue, compared to the price at which the underwriter sells it to the public.

In lending, the spread can also refer to the price a borrower pays above a benchmark yield to get a loan. If the prime interest rate is 3%, for example, and a borrower gets a mortgage charging a 5% rate, the spread is 2%.

The bid-ask spread is also known as the bid-offer spread and buy-sell. This sort of asset spread is influenced by a number of factors:

Supply or "float" (the total number of shares outstanding that are available to trade)
Demand or interest in a stock
Total trading activity of the stock
For securities like futures contracts, options, currency pairs, and stocks, the bid-offer spread is the difference between the prices given for an immediate order—the ask—and an immediate sale – the bid. For a stock option, the spread would be the difference between the strike price and the market value.

One of the uses of the bid-ask spread is to measure the liquidity of the market and the size of the transaction cost of the stock. For example, on Jan. 11, 2022, the bid price for Alphabet Inc., Google's parent company, was $2,790.86 and the ask price was $2,795.47.1 The spread is $4.61. This indicates that Alphabet is a highly liquid stock, with considerable trading volume.

The spread trade is also called the relative value trade. Spread trades are the act of purchasing one security and selling another related security as a unit. Usually, spread trades are done with options or futures contracts. These trades are executed to produce an overall net trade with a positive value called the spread.

Spreads are priced as a unit or as pairs in future exchanges to ensure the simultaneous buying and selling of a security. Doing so eliminates execution risk wherein one part of the pair executes but another part fails.


A long-term investment strategy is one that entails holding investments for more than a full year. This strategy includes holding assets like bonds, stocks, exchange-traded funds (ETFs), mutual funds, and more. Individuals who take a long-term approach require discipline and patience, That's because investors must be able to take on a certain amount of risk while they wait for higher rewards down the road.

Many market experts recommend holding stocks for the long term. The S&P 500 experienced losses in only 11 of the 47 years from 1975 to 2022, making stock market returns quite volatile in shorter time frames.1 However, investors have historically experienced a much higher rate of success over the longer term.

In a low-interest rate environment, investors may be tempted to dabble in stocks to boost short-term returns, but it makes more sense—and pays out higher overall returns—to hold on to stocks for the long term. In this article, we show how you may be able to benefit from holding stocks for a longer period of time.

Long-term investments almost always outperform the market when investors try and time their holdings.
Emotional trading tends to hamper investor returns.
The S&P 500 posted positive returns for investors over most 20-year time periods.
Riding out temporary market downswings is considered a sign of a good investor.
Investing long-term cuts down on costs and allows you to compound any earnings you receive from dividends.

Better Long-Term Returns
The term asset class refers to a specific category of investments. They share the same characteristics and qualities, such as fixed-income assets (bonds) or equities, which are commonly called stocks. The asset class that's best for you depends on several factors, including your age, risk profile and tolerance, investment goals, and the amount of capital you have. But which asset classes are best for long-term investors?

If we look at several decades of asset class returns, we find that stocks have generally outperformed almost all other asset classes. The S&P 500 returned an average of 11.82% per year between 1928 and 2021. This compares favorably to the 3.33% return of three-month Treasury bills (T-bills) and the 5.11% return of 10-year Treasury notes.

Emerging markets have some of the highest return potentials in the equity markets, but also carry the highest degree of risk. This class historically earned high average annual returns but short-term fluctuations have impacted their performance. For instance, the 10-year annualized return of the MSCI Emerging Markets Index was 2.89% as of April 29, 2022.3

Small and large caps have also delivered above-average returns. For instance, the 10-year return for the Russell 2000 index, which measures the performance of 2,000 small companies, was 10.15%.4 The large-cap Russell 1000 index had an average return of 13.57% for the last 10 years, as of May 3, 2022.56

Ride Out Highs and Lows
Stocks are considered to be long-term investments. This is, in part, because it's not unusual for stocks to drop 10% to 20% or more in value over a shorter period of time. Investors have the opportunity to ride out some of these highs and lows over a period of many years or even decades to generate a better long-term return.

Looking back at stock market returns since the 1920s, individuals have rarely lost money investing in the S&P 500 for a 20-year time period. Even considering setbacks, such as the Great Depression, Black Monday, the tech bubble, and the financial crisis, investors would have experienced gains had they made an investment in the S&P 500 and held it uninterrupted for 20 years.

While past results are no guarantee of future returns, it does suggest that long-term investing in stocks generally yields positive results, if given enough time.


Investors Are Poor Market Timers
Let's face it, we're not as calm and rational as we claim to be. In fact, one of the inherent flaws in investor behavior is the tendency to be emotional. Many individuals claim to be long-term investors until the stock market begins falling, which is when they tend to withdraw their money to avoid additional losses.

Many investors fail to remain invested in stocks when a rebound occurs. In fact, they tend to jump back in only when most of the gains have already been achieved. This type of buy high, sell low behavior tends to cripple investor returns.

According to Dalbar's Quantitative Analysis of Investor Behavior study, the S&P 500 had an average annual return of just over 6% during the 20-year period ending Dec. 31, 2019. During the same time frame, the average investor experienced an average annual return of about 2.5%.

There are a few reasons why this happens. Here are just a couple of them:

Investors have a fear of regret. People often fail to trust their own judgment and follow the hype instead, especially when markets drop. People tend to fall into the trap that they'll regret holding onto stocks and lose a lot more money because they drop in value so they end up selling them to assuage that fear.
A sense of pessimism when things change. Optimism prevails during market rallies but the opposite is true when things turn sour. The market may experience fluctuations because of short-term surprise shocks, such as those related to the economy. But it's important to remember that these upsets are often short-lived and things will very likely turn around.
Investors who pay too much attention to the stock market tend to handicap their chances of success by trying to time the market too frequently. A simple long-term buy-and-hold strategy would have yielded far better results.

Lower Capital Gains Tax Rate
Profits that result from the sale of any capital assets end up in a capital gain. This includes any personal assets, such as furniture, or investments like stocks, bonds, and real estate.

An investor who sells a security within one calendar year of buying it gets any gains taxed as ordinary income. These are referred to as short-term capital gains. Depending on the individual's adjusted gross income (AGI), this tax rate could be as high as 37%.

Any securities that are sold after being held for more than a year result in long-term capital gains. The gains are taxed at a maximum rate of just 20%. Investors in lower tax brackets may even qualify for a 0% long-term capital gains tax rate.

Less Costly
One of the main benefits of a long-term investment approach is money. Keeping your stocks in your portfolio longer is more cost-effective than regular buying and selling because the longer you hold your investments, the fewer fees you have to pay. But how much does this all cost?

As we discussed in the last section, you save on taxes. Any gains from stock sales must be reported to the Internal Revenue Service (IRS). That ends up increasing your tax liability, which means more money out of your pocket. Remember, short-term capital gains can cost you more than if you hold your stocks for a longer period of time.

Then there are trading or transaction fees. How much you pay depends on the type of account you have and the investment firm that handles your portfolio. For instance, you may be charged a commission or markup, where the former is deducted when you buy and sell through a broker while markups are charged when the sale is directed through their own inventory. These costs are charged to your account whenever you trade stocks. This means your portfolio balance will drop with every sale you make.

Firms often charge ongoing fees, such as account maintenance charges, that can also put a dent in your account balance. So if you're a regular trader who has a short-term goal, your fees will add up even more when you factor in transaction fees.

Compounding With Dividend Stocks
Dividends are corporate profits distributed by companies with a track record of success. These tend to be blue chips or defensive stocks. Defensive stocks are companies that do well regardless of how the economy performs or when the stock market drops.

These companies pay regular dividends—usually every quarter—to eligible shareholders, which means that you get to share in their success. While it may be tempting to cash them out, there's a very good reason why you should reinvest the dividends into the companies that actually pay them.

If you own any bonds or mutual funds, you'll know about how compound interest affects your investments. Compound interest is any interest calculated on the principal balance of your stock portfolio and any earlier interest you earned. This means that any interest (or dividends) that your stock portfolio accumulates compounds over time, thereby increasing the amount of your account in the long run.


Have you ever wondered what happened to your socks when you put them into the dryer and then never saw them again? It's an unexplained mystery that may never have an answer. Many people feel the same way when they suddenly find that their brokerage account balance has taken a nosedive. Where did that money go?

Fortunately, money that is gained or lost on a stock doesn't just disappear. Read to find out what happens to it and what causes it.

When a stock tumbles and an investor loses money, the money doesn't get redistributed to someone else.
Essentially, it has disappeared into thin air, reflecting dwindling investor interest and a decline in investor perception of the stock.
That's because stock prices are determined by supply and demand and investor perception of value and viability.

Disappearing Money
Before we get to how money disappears, it is important to understand that regardless of whether the market is rising–called a bull market–or falling–called a bear market–supply and demand drive the price of stocks. And it's the fluctuations in stock prices that determines whether you make money or lose it.

Buy and Sell Trades
If you purchase a stock for $10 and sell it for only $5, you will lose $5 per share. It may feel like that money must go to someone else, but that isn't exactly true. It doesn't go to the person who buys the stock from you.

For example, let's say you were thinking of buying a stock at $15, and before you decide to buy it, the stock falls to $10 per share. You decide to purchase at $10, but you didn't gain the $5 depreciation in the stock price. Instead, you got the stock at the current market value of $10 per share. In your mind, you saved $5, but you didn't actually earn a $5 profit. However, if the stock rises from $10 back to $15, you have a $5 gain, but it has to move back higher for you to gain the $5 per share.

The same is true if you're holding a stock and the price drops, leading you to sell it for a loss. The person buying it at that lower price–the price you sold it for–doesn't necessarily profit from your loss and must wait for the stock to rise before making a profit.

The company that issued the stock doesn't get the money from your declining stock price either.

There are investors who place trades with a broker to sell a stock at a perceived high price with the expectation that it'll decline. These are called short-selling trades. If the stock price falls, the short seller profits by buying the stock at the lower price–closing out the trade. The net difference between the sale and buy prices is settled with the broker. Although short-sellers are profiting from a declining price, they're not taking your money when you lose on a stock sale. Instead, they're doing independent transactions with the market and have just as much of a chance to lose or be wrong on their trade as investors who own the stock.

In other words, short-sellers profit on price declines, but it's a separate transaction from bullish investors who bought the stock and are losing money because the price is declining.


The S&P 500—short for the Standard & Poor's 500 Index—is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. While it assumed its present size (and name) in 1957, the S&P actually dates back to the 1920s, becoming a composite index tracking 90 stocks in 1926. The average annualized return since its inception in 1926 through Dec. 31, 2021, is 10.49%. 2 The average annualized return since adopting 500 stocks into the index in 1957 through Dec. 31, 2021, is 10.67%.

The average annual return (AAR) is the percentage showing the return of a mutual fund in a given period. In other words, it measures a fund's long-term performance, so it's a key tool for investors considering a mutual fund investment.

> The S&P 500 index acts as a benchmark of the performance of the U.S. stock market overall, dating back to the 1920s (in its current form, to the 1950s).
> The index has returned a historic annualized average return of around 10.5% since its 1957 inception through 2021.
> While that average number may sound attractive, timing is everything: Get in at a high or out at a relative low and you will not enjoy such returns.

The History of the S&P 500

> During the first decade after its introduction in 1957, and reflecting the economic expansion in the U.S after World War II, the value of the index rose to slightly over 800.
> From 1969 to 1981, the index gradually declined to fall under 360 as a sign of high inflation.
> During the 2008 financial crisis and the Great Recession, the S&P 500 fell 46.13% from October 2007 to March 2009.
> By March 2013, the S&P bounced back from the crisis and continued on its 10-year bull run from 2009 to 2019 to climb more than 250%.
> The COVID-19 pandemic in 2020 and the subsequent recession caused the S&P 500 to plummet nearly 20%.
> The S&P 500 recovered during the second half of 2020 reaching a number of all-time highs in 2021.

How Inflation Affects S&P 500 Returns
One of the major problems for an investor hoping to regularly recreate that 10.67% average return is inflation. Adjusted for inflation, the historical average annual return is only around 7%. There is an additional problem posed by the question of whether that inflation-adjusted average is accurate, since the adjustment is done using the inflation figures from the Consumer Price Index (CPI), whose numbers some analysts believe vastly understate the true inflation rate.

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The XRPUSD pair continues to trade within a wide descending channel, but this week it attempted an upward trend, as did most of the cryptocurrency market.

Currently, the token price is consolidated above the middle line of the Bollinger Bands (0.4070), but to start a more serious growth, it will have to overcome the 0.4395 mark (Murray [1/8], upper line of the Bollinger Bands). In this case, the targets will be the levels 0.4883 (Murray [2/8]), 0.5371 (Murray [3/8]) and 0.6 (Murray [4/8], Fibo retracement of 23.6%). The key support zone for the "bears" is still 0.3900-0.3650, the breakdown of which will allow the quotes to continue moving to the area of 0.2930 (Murray [-2/8]) and 0.1953 (Murray [2/8], the lower boundary of the descending channel).

In general, a serious movement of quotations is possible in the near future, as indicated by the consolidation of the Bollinger Bands and the price at around 0.4100, but its direction has not yet been determined. The MACD histogram is shrinking in the negative zone, and the Stochastic is directed upwards, but it approaches the overbought zone, which does not exclude a reversal to a downward movement.

Resistance levels: 0.4395, 0.4883, 0.5371, 0.6 | Support levels: 0.3650, 0.2930, 0.1953

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Another major factor in annual returns for an investor in the S&P 500 is when they choose to enter the market. For example, the SPDR S&P 500 ETF Trust (SPY), which basically duplicates the index, performed very well for an investor who bought between 1996 and 2000 but experienced a consistent downward trend from 2000 to 2002.

Investors who buy during market lows and hold their investment, or sell at market highs, will experience larger returns than investors who buy during market highs, particularly if they then sell during dips.

It's clear that the timing of a stock purchase plays a role in its returns. For those who want to avoid the missed opportunity of selling during market lows, but don't want the risk of active trading, dollar-cost averaging is an option.

What Is the S&P 500 Index?
The S&P 500 Index is a collection of stocks intended to reflect the overall return characteristics of the stock market as a whole. The stocks that make up the S&P 500 are selected by market capitalization, liquidity, and industry. Companies to be included in the S&P are selected by the S&P 500 Index Committee, which consists of a group of analysts employed by Standard & Poor's.

The index primarily mirrors the overall performance of large-cap stocks. The S&P 500 is considered by analysts to be a leading economic indicator for both the stock market and the U.S. economy. The 30 stocks that make up the Dow Jones Industrial Average were previously considered the primary benchmark indicator for U.S. equities, but the S&P 500, a much larger and more diverse group of stocks, has supplanted it in that role over time.

It's difficult for most individual investors to actually be invested in the S&P 500 themselves since that would involve buying 500 individual stocks. However, investors can easily mirror the index's performance by investing in an S&P 500 Index exchange-traded fund, which duplicates the index's holdings in its portfolio and so corresponds to its return and yield. Since ETFs are frequently recommended for beginning and risk-averse investors, the S&P 500 is a popular choice for many investors trying to capture a diversified selection of the market.

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23 (edited by SolidECN 2022-06-06 06:32:47)


Stock price is an indicator of a company's market value, but the price of a share of stock will also depend on the number of shares outstanding. The reason why certain stocks are priced so high is usually due to the company having never or rarely having completed a stock split.

There are many ways to evaluate a stock in addition to its absolute share price. Here, we take a look at some of the largest companies in the U.S. and abroad.

> Companies are typically valued by their total market capitalization on a stock exchange, or number of shares outstanding times the share price.
> Still, many investors are interested in the most pricey shares available on an exchange, which can indicate exclusivity.
> Companies can also be ranked by revenue and profitability.

Top Companies by Stock Price
The most expensive publicly traded share of all time is Warren Buffett’s Berkshire Hathaway (BRK.A), which was trading at $458,675 per share, as of January 2022. Berkshire hit an all-time high on Jan. 18, 2022, at $487,255. Thanks to spectacular shareholder gains and the idiosyncrasies of its founder, this share value is unlikely to be matched by anything other than continued gains in Berkshire’s share price.

Top Companies by Market Cap
By market capitalization, as of January 2022, Apple (AAPL) is the biggest company at $2.652 trillion, followed by Microsoft (MSFT) at $2.222 trillion, Google (GOOGL) at $1.725 trillion, (AMZN) at $1.446 trillion, Tesla (TSLA) at $947.92 billion, and Meta (FB), formerly Facebook, at $843.34 billion.

Back in 2007, Chinese energy giant PetroChina (PTR) reached an estimated market value of around $1 trillion. However, this valuation didn't stick. As of January 2022, PTR's market capitalization stood at just $146.95 billion.

The Bottom Line
On a pure market value measure, Apple has often been considered the most valuable, publicly traded company of all time. Although Microsoft did briefly hit the $2 trillion market cap mark in June 2021. It is certainly possible another company’s market cap will exceed these measures, and maybe—though less likely—another company will surpass Berkshire Hathaway as the highest priced single stock share.

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