Page 22 - Trading #101 Course – PART II TWO: SUCCESSFUL TRADING PIE – www.traderscoach.com

TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM

Also see the Dow 1900 to the present monthly chart from StockCharts.com by going to
the website link:
• http://stockcharts.com/charts/historical/djia1900.html

Now, during the current worldwide economic volatility, investors have become less
enamored of the blind buy-and-hold strategy, finding that the market can at times wield
its strength and take a sharp, quick downturn at any time.

Investors today are becoming more aware of watching their portfolios closely in a new
way. Smart investors worldwide are becoming more proactive and are learning about
how the market moves so that they can protect themselves from dramatic shifts by
entering and exiting the market (trading) when there are indications that the market is
going to have a correction.
Investing in the DJIA is made widely accessible in equities through exchange-traded
funds (ETFs) as well as in derivatives through option contracts and futures contracts.
As of August 2017, Boeing and 3M are among the highest priced stocks in the average
and therefore have the greatest influence on it. Alternately, Cisco Systems and General
Electric are among the lowest priced stocks in the average and have the least amount
of sway in the price movement. Many critics of the DJIA recommend the float-adjusted
market-value weighted S&P 500 or the Wilshire 5000, the latter of which includes all
U.S. equity securities, as better indicators of the U.S. stock market.

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