First, understand the overall picture of stock trading.
Conclusion: Stocks are "established when orders collide in the market."
Reason: The price of stocks is determined by buying and selling between individuals and institutional investors.
Specific example:
- You want to buy it for 100 yen.
- Someone wants to sell it for 100 yen. → Transaction completed at this moment
Understanding terms will be faster if you look at the terms with this system in mind.
Stock exchanges and brands
Conclusion: Stocks are bought and sold as "corporate units (issues)" on the "market (exchange)."
stock exchange
One word explanation: A place to buy and sell stocks Details: A market where company stocks are gathered and bought and sold.
Example:
- Tokyo Stock Exchange
Brand name
One word explanation: Company to invest in Details: Stocks of each company
Example:
- Toyota stocks, Sony stocks, etc.
Execution and price (opening price/closing price)
Conclusion: The moment the transaction is completed is the "execution", and the accumulation of these is the price.
Contract
One word explanation: A sale is completed Details: The moment when a buy order and a sell order match
Opening price/closing price
| term | meaning |
|---|---|
| opening price | the first established price of the day |
| closing price | Price established at the end of the day |
Practical points:
- The “closing price” seen in the news is the standard for market evaluation
The way you look at the board is super important.
Conclusion: When you look at the board, you can see that “supply and demand = rising power”
board
One word explanation: Order list Details: Price and quantity for those who want to buy and those who want to sell
Image:
Sell：105yen（100shares）
Sell：104yen（200shares）
-------------
Buy：103yen（150shares）
Buy：102yen（300shares）
How to read:
- A lot of buying → tends to go up
- Lots of selling → tends to go down
Beginner misconceptions: → The board does not determine the future.
Difference between limit price and market (super important)
Conclusion: Limit price if you value control, market price if you value speed.
limit order
One word explanation: An order that specifies a price Details: Decide "I'll buy (sell) at this price"
Benefits:
- Prevent unfavorable prices
Disadvantages:
- Possibility of not being executed
market order
One word explanation: Order without specifying price Details: Immediately available at current price
Benefits:
- Can be bought/sold immediately
Disadvantages:
- Prices may be unexpected
Stop high/stop low
Conclusion: Stocks have a “daily price movement limit”
stop high/low
One word explanation: upper and lower price limits Details: Limits to prevent sudden rises and falls
Example:
- 1000 yen the day before → Upper limit 1200 yen, etc.
Practical points:
- Stop high = concentration of popularity
- Stop low = rush of selling
Summary
- Stocks are “executed (contracted) when orders match”
- You can get hints about supply and demand by looking at the board.
- Use limit prices and market orders depending on the purpose
- There are restrictions on price movement (stop high/low)
Today's action
- See the “board” in action on a securities app
- Try limit and market with demo
- Check closing prices daily