Blue chip stocks take their name from gambling, from such games as roulette and poker. Player's bet with chips, and the blue ones are the most valuable. The same meaning pertains to blue chip stocks, as these types of stocks are the biggest, and sometimes the most valuable in the stock market. Coca-Cola and McDonalds are considered as Blue Chip. Of the thousands of publicly held companies, only a few dozen are regarded as blue chips.

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They play a major role in the stock market because they are huge companies with enormous market value. Blue Chips also have psychological importance because if the stock price of the biggest companies are doing well, it is seen as a good sign for the rest of the market.

Blue Chip Stocks: Everything You Need to Know

And the reverse is true In falling markets, the Blue Chips are considered to be safer in stock trading. The theory that big, diversified companies are better able to withstand such negative forces as recessions.

The capitalization of a company is figured by multiplying its stock price by the number of shares it has issued, or shares outstanding.

The Index that measures Blue Chip performance, is the Dow Jones Industrial Averagewhich tracks 30 of the largest stocks. Another benefit of the Blue Chips, is that they have greater liquidity. So when the stock market blue chip stocks are traded on the binary trading neteller forbes, it is easier to find buyers and sellers.

It is important to note, that not all blue chips are the safest stocks. Some of these companies have gone nowhere, or steadily down. General Motors is a recent example of this. You as a stock investor and trader, still must do your due diligence, and look at the companies fundamental's.

So you ask, "What kind of stock trading system would I use to trade a Blue Chip Stock? Many stock investors buy Blue Chips, strictly for investing in the stock dividends. Large Cap companies usually pay dividends and are loath to cut them.

Or many stock traders swing trade Blue Chip and Large Cap stocks. O'neilauthor of the classic book How To Make Money In Stock market 8/18 A winning System In Good Times and Badhas written an outstanding book called Guide To The Markets. This is the quintessential guide for anyone interested in gaining insight about the financial and stock markets.

This book is awesome and is very Easy-reading. It gives both newcomers and seasoned blue chip stocks are traded on the valuable insight and quick reference reminders when binary options workshop the entire investment and darlington livestock market spectrum from stocks, bonds and mutual funds to futures, options and the international marketplace.

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Return from "Blue Chip Stocks" to "Online Stock Trading Types of Stocks" Return from "Blue Chip Stocks" to the Home Page: Blue Chip Stocks Blue chip stocks take their name from gambling, from such games as roulette and poker. Blue Chips are also thought as being called Large Cap Stocks.

Learn More Here Guide To The Markets: Learn What it Takes to Become a Successful Stock Trader Learn More Here Best Online Stock Broker Click The Image to Learn More Free Stock Analysis Learn More Here.