Dow Jones Equity Indices for Beginners

Learn the ropes of the Dow Jones equity indices

The Dow Jones equity index is one of the main equity indexes people follow on a regular basis. Made up of 30 companies, it provides a wide breadth of where the market is trading both on a daily basis and over the course of time. Even if you don't own individual stocks, you are probably invested in some way in the Dow Jones companies. Mutual Funds, 401Ks and pension plans all commonly take positions in this index.

But if you're feeling overwhelmed by the idea of learning about the Dow Jones equity indices, don't be. With just a little research, you'll be speaking the Wall St. lingo in no time. Think of this little research as Dow Jones equity indices for beginners.

1. Learn about the Dow Jones equity markets by visiting their several official news and information websites.

2. Educate yourself on how the Dow Jones Index and other Dow Jones equity indices are calculated.

3. Take tutorials or receive training in how to trade the Dow Jones listings.

 

Find out about the Dow Jones index by visiting the official website

The Dow Jones was created in 1896 and since that time has stood as a bench mark for how the broader equity market is doing. Having branched out from its original index, there are several indexes such as Dow Jones Industrial Average (which follows 30 companies), Dow Jones Transports (which follows transport companies), and even Dow Jones Utilities (which follows utility companies) among others equity indexes.
Try: Check out the website for DJ Averages.com. One of several official Dow Jones websites, they provide a "Resource Center" as well as other sections that describe the equity indices in layman terms. Also visit DJ Newswires.com. They offer an educational tutorial about how news affects the equity indices and stocks that are traded on the Dow Jones.

Find out how the Dow Jones Index is calculated

Now that you have a general basis of the different equity indexes, it's important to learn how that number is arrived at during and after each trading day. It seems like it must be terribly complicated, but remember that each Dow Jones Index only has a small sampling of equity stocks. After reading a few articles it will make perfect sense.
Try: Check out the website for The Motley Fool. A long-standing investment website, they offer a comprehensive guide to how the different equity indexes of the Dow Jones are calculated. Also check out the website for Stock Market for Beginners. They also have a guide which explains how the Dow Jones is calculated on a daily basis.

Attend training courses which focus on the Dow stock listings

When it comes to learning about the listings of the Dow Jones, it stands to reason that eventually you will want to learn to trade them for your portfolio. Take a course via online tutorial or at a seminar where trading Dow stock listings is discussed. Remember that aside from trading individual stocks, you may also trade Dow Jones index listings as well.
Try: Check out the Etrade website. They offer online tutorials in video format on everything from basic Dow Jones education and equity trading to advanced option strategies. Also check out the Online Trading Academy. They teach new traders the ropes of the market inclusive of strategies about trading the equity positions listed in the Dow Jones equity indices.

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