Stock Market Futures Tutorial: Everything You Need to Know
In this guide, we will cover everything you need to know about the stock market futures, including how to invest in bonds and the different types of bonds available. We will dispel the myth that bonds are boring and only yield low returns, and instead show you how you can make significant profits in the bond market.
We will start by explaining what a bond is and how it operates. We will also cover key terms you need to understand, such as bond prices, bond yields, and coupon rates. We will then go through the various types of bonds available, including government bonds, municipal bonds, and corporate bonds. We will also explain different types of debt-backed securities and clear up any confusion around them.
We will cover topics such as taxes on bonds, how to buy and trade bonds, bond trading strategies, and common mistakes to avoid. By the end of this tutorial, you will have a comprehensive understanding of the stock market futures 2024.
Stock Market For Beginners in 2024 (ULTIMATE Guide)
Bonds Are Not Boring
Many people assume that bonds are boring and only yield low returns. However, this is not the case. In fact, you can make significant profits in the bond market, with fluctuations in prices often higher than in the stock market.
For example, Michael Burry, the investor from “The Big Short,” made an 88% profit in one year by shorting long-dated bonds. However, it’s important to note that you can also lose a lot of money in the bond market.
What is a Bond?
A bond is a fixed income instrument that represents a loan made by an investor or borrower. When an entity needs to raise money, they may issue bonds to borrow money from investors. They will then pay the bond back over a predetermined amount of time.
Entities that may issue bonds include governments, cities, and companies. Bonds are a common way for entities to raise money, along with equity capital and retained earnings.
Bond Market vs Stock Market
The bond market is actually much larger than the stock market, with an estimated value of $119 trillion compared to the stock market’s $46 trillion. The bond market also has a much higher daily trading volume than the stock market futures.
Understanding the differences between bonds and stocks is important, as bondholders have priority over stockholders in the event of a bankruptcy.
How to Explode Your Day Trading Profits with a 2-Strategy Plan!
Two Simple Day Trading Strategies for Beginners
If you’re a beginner in day trading, there are two simple strategies that you can use every day: opening range breakout and gap fill. These are repeatable strategies that offer opportunities to trade on the ES and NASDAQ futures. Let’s take a look at how these strategies played out today.
Gap Fill Strategy
The gap fill strategy involves looking for gaps in the market and predicting that the price will move to fill the gap. For instance, we can look at the SPY ETF, which is composed of S&P 500 stocks, and see that there is a gap in the market when it opens at 4 AM. Today, we saw that the market opened higher than Friday’s close, creating a gap. We predicted that the market would move down to fill the gap, and it did. This strategy is simple yet effective, and it offers many opportunities to trade every day.
Opening Range Breakout Strategy
The opening range breakout strategy involves looking at the first 15-minute candlestick after the market opens and predicting that the price will break out from the range. We can draw a line to indicate the range and look for support and resistance levels. In today’s trading, we saw that the market broke down from the opening range, and we took a short position. This strategy is also simple yet effective and offers many opportunities to trade every day.
