Mike Swanson's picture

Stock Market History In A Nutshell - Mike Swanson (02/01/10)

In this article we are going to discuss some interesting facts regarding the stock market history. Boston was originally the center of America's finances. Boston dealers were the main people that would by and sell bonds. This early on their was no designated place that was used for stock market exchanges. The wall built on the Manhattan Island was placed there in 1644 by the dutch. It was placed their for protections from British attacks. This road has since then became better known as Wall Street. It is also thought to be the world's financial center even though this is not accurate.

The world's first organized stock market exchange was in Belgium. Schlossgarten, Berlin was the next to organize a place in the 1600's. The coffee house in 1725 that London brokers started doing business at was called Jonathon's. In 1773 they changed the name from Jonathon's to The Stock Exchange. 1792 is when the United States of America created their organized place for stock exchange.

In 1792 when the United States created a place for stock exchanges they built it on the Manhattan Island of New York. This place is better known as Wall Street and was the center of commerce. Wall Street is located east of Broadway. It later also became the name of the surrounding geographic neighborhood. George Washington took the oath of office in 1789 from Federal Hall overlooking Wall Street. The Bill Of Rights was also passed here.

In colonial days the government promised to pay back the money they needed to use to support the war. In a vain effort to raise money local banks were issuing stock from their companies. Around this time people were starting to figure out that they could place money in stocks and as long as the stock market did not crash they could make a fortune off of it.

Within a couple years there was a sudden increase in the population of the United States. This in turn caused a major dilemma because companies didn't have enough money to support the increase of population. As they tried to find ways to resolve the issue they invested money in buying stock. History has proven how big a role stocks have played in the expansion of most companies. It also shows us how the Industrial Revolution has effected it.

In 1929 the stock market crashed causing millions of people to lose their fortunes. The crashing of the stock market was so bad that dozens of people committed suicide. This brought about the great depression of the 1930's. Even the businesses could not get credit for their inventory and no body could use check as a method of payment. Depositors watch one hundred and forty billion dollars disappear when their bank crashed.

After you have finished reading this article you should know a lot more about the stock market and its history. I'm sure you look into it you can also find some more interesting facts that we haven't talked about. Now that you understand more about it you should be able to decide how you wish to invest your money in the stock market. Most people that invest their money choose to use the index method. However, you can also invest it through fundamental or technical analysis if you choose too.


Sign Up Below to My Free Weekly Newsletter

Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

After I retired from the hedge fund world I setup this website and blog. If you sign up for my free weekly email list below I’ll send you an update on average about once a week on my views of the current stock market trends and share with you actionable investment ideas.

Now I cannot promise you that every stock I find will go up in value. I can’t promise you endless 100% returns as others claim they do and as all the disclaimers say past performance does not necessarily predict future performance and you can lose all of your money in the stock market.

This is reality.

What I can promise you is my dedication to doing the best I can for you.

You see the key to making money over the long-run in the stock market is to manage your risk. Once you sign up to my newsletter I’ll send you a series of educational videos and writings showing you how I use stop-loss orders to cut any potential losses and how I use my two fold formula system that combines fundamental and technical analysis to pick stocks. My goal is to risk one dollar to try to make at least three dollars in my trades by looking for stocks that are priced cheaply on a valuation basis, have high earnings growth, and have excellent chart patterns.

So join my list below and let me help guide you on your journey in the stock market.