“I did, what will surprise you not a little, speculate partly in American funds, but particularly in English stocks,”
– Karl Marx¹⁾

The stock market is an institution where a public company's stock, divided into shares, are bought and sold, often through some kind of broker. For the most part, it's a very slow game of speculation, fueled by news and momentum (e.g. hype, expectations, vibes, etc.).²⁾

A stock market index measures the stock market's performance, using a select handful of stocks. These are normally used to evaluate a market/sector and determine where it might be trending. On the other hand, an investor may use these indices as a benchmark to compare their portfolio against. In the United States, you will typically come across three specific indices, whose purpose and significance are explained below:

• Dow Jones Industrial Average - This index measures the average of the Top 30 stocks, traded on the NYSE and NASDAQ. It has nothing to do with industrial stocks today, aside from name only.
• Nasdaq Composite - This index weighs over 3,000 common equities on the Nasdaq stock market, compared to the Nasdaq-100. It's often said that a majority of these are IT companies.
• S&P 500 - This index weighs the 500 largest companies traded on the NYSE and Nasdaq. This one is said to be the best representation of the U.S. stock market and economy.

A market trend refers to the perceived patterns used to analyze and predict a market's direction. The primary trends are 'bull market' (📈) and 'bear market' (📉), named after how these animals attack. These are then used to form a technical analysis, which is when people start talking about things like candlestick charts, dead cat bounce, head and shoulders, triangles, wedges, etc.

Before we begin, I'd like to review the technical term for negative percentage ranges. On a typical day, stocks tend to fluctuate between +5% to -5%, but a handful of people with almost no financial knowledge seem to conflate 'crash' with 'losing $1,000', which is an understandable mistake, but when the so-called 'crash' is about -5% of its value, that is not a crash! With that out of the way, here is the appropriate terminology:

• -5–9.99% - This is called a dip or pullback.
• -10+% - This is called a market correction, but it's used interchangeably with pullback.
• -20+% - This is called a bear market. Most individual stocks will stop around here.
• -50+% - This is called a crash. By this point, you are probably looking at a specific sector.
• -80+% - This is called a depression.

Now, if you are interested in stock market crashes and bear markets, be warned that the NYSE has added trading curbs (circuit breakers) to impede a full-on crash. The first two stops are at -7% and -13%, which both trigger a 15-minute trading halt unless the market close is near, and the final stop is at -20% which forces the market to close. Meanwhile, a recession is a different (and boring) story.

A brokerage firm is an institution that acts as a middleman between investors and the stock market, issuing accounts that investors can deposit money into so the broker can perform the transaction. You'll often find 'discount brokers' that typically lets investors handle everything themselves, compared to 'full-service brokers' that offers additional benefits, like stockbroker advice (e.g. estate, taxes, retirement, etc.).

I would highly suggest that you do your own research on brokerage firms, since firms can change or improve, and this article is more oriented towards beginners. If you're a simple, low-risk investor who isn't crazy, look into brokerage firms that offers a '$0 account minimum' and 'no commission fees', and don't be afraid to switch or transfer your brokerage account(s) if your brokerage firm doesn't work out.

There have been ancient theories which attempt to predict the long-term financial market cycles. Of course, it should be mentioned that these theories won't be very useful to the average investor, as they're both over a century old, may need to be re-calibrated, and they involve you waiting for an artificial period of time anyways, so 'have fun' and take them with a grain a salt. Without further ado, the aforementioned theories are:

• Benner Cycle (1872) - A basic chart that uses a 16-18-20 year model. The oldest illustration, from Tritch Hardware before the family moved to Los Angeles, notably goes up to 2059.
• Gann Cycle (1908) - The 18.6 year model which loosely follows the North Node in astrology. The chart originally went up to 2008, but an extended, adjusted version has been made here.
• Nodal Cycle (1937) - The alternative 18.6 year model which focuses on the North Node's location, but actually involves financial astrology as it warns against four particular signs.

• This is an informative article. This should not be interpreted as financial advice.
• In addition to the market's unpredictability, you should also consider the earnings calendar and see if you can take advantage of the momentum before or after the earnings announcement.

• Investopedia and Khan Academy - Some additional educational resources.
• Finviz Map - This is a heat map of the S&P 500 index. It's a useful visual, but do keep in mind that the index occasionally gets 'rebalanced' when you come across old memes or screenshots.³⁾
• StockTwits - A social media platform for 'sharing ideas' about stocks and cryptocurrency. It's mostly just Twitter for investors, so expect the bulls and bears to fight.