Exchange
NYSE — New York Stock Exchange
The largest stock exchange in the world by market cap — over $25 trillion. Home to blue chip companies like JPMorgan, Coca-Cola, and Walmart. NYSE uses a hybrid model with human specialists and electronic trading. Located on Wall Street, New York.
Exchange
NASDAQ
The second largest exchange, fully electronic with no trading floor. Home to most major tech companies — Apple, Microsoft, Nvidia, Meta, Amazon. Known for higher volatility and growth-oriented stocks. The NASDAQ Composite tracks all ~3,000 stocks listed here.
Exchange
OTC — Over the Counter
Stocks traded directly between parties rather than on a formal exchange. Includes OTC Markets (Pink Sheets) and OTCBB. Home to penny stocks, small foreign companies, and delisted companies. Much less regulated — higher risk, higher manipulation potential.
Market Cap Tiers
Key Indices
Index
S&P 500 (SPX / ES / SPY)
500 largest US companies weighted by market cap. The most widely followed benchmark for the US market. If you're trading ES futures or SPY you're trading the S&P 500. A move in SPX affects almost every stock in the market.
Index
NASDAQ 100 (NDX / NQ / QQQ)
100 largest non-financial companies on NASDAQ, heavily weighted toward tech. Apple, Microsoft, and Nvidia alone make up ~20% of QQQ. NQ futures are the most popular futures contract for day traders due to its volatility and liquidity.
Index
Dow Jones (DJIA / YM / DIA)
30 large blue chip US companies — price weighted (not market cap). The oldest and most well-known index. Less representative than SPX due to only 30 stocks. YM futures track the Dow. Tends to be less volatile than NQ.
Index
Russell 2000 (RUT / RTY / IWM)
2,000 small cap US companies. Considered a leading indicator of US economic health since small caps are more domestically focused. When RUT outperforms SPX it signals risk-on. RTY futures track the Russell 2000.
Volatility
VIX — Volatility Index
The "fear gauge" — measures expected 30-day volatility of the S&P 500 derived from options prices. VIX below 15 = calm market. VIX 15–25 = elevated. VIX above 30 = fear/panic. VIX spikes when markets sell off. Inverse relationship with SPX most of the time.
Breadth
A/D Line — Advance / Decline
Measures how many stocks are advancing vs declining regardless of index weighting. If SPX is rising but the A/D line is falling, only a few large caps are driving the move — a sign of weak breadth and potential reversal. Strong rallies have broad participation.
Trading Hours (ET)
Premarket
4:00 AM – 9:30 AM
Low volume, wide spreads, news-driven moves. Earnings reactions happen here. Not recommended for beginners — thin liquidity means large slippage.
Regular Session
9:30 AM – 4:00 PM
Full liquidity and volume. Most retail and institutional activity. The open (9:30–10:30 AM) and power hour (3:00–4:00 PM) are the highest volume windows.
After Hours
4:00 PM – 8:00 PM
Reduced volume. Earnings after the bell move here. Can set up the next day's gap up or gap down. Thin liquidity means prices can gap significantly at the open.
Futures (24hr)
Sun 6PM – Fri 5PM
ES, NQ, YM futures trade nearly 24 hours. The overnight futures session shows global sentiment before the US open. Gaps between futures close and open price indicate expected gap direction.
Market Holidays
Closed / Half Days
NYSE/NASDAQ closed on federal holidays. Half sessions (1:00 PM close) on Christmas Eve, day before Thanksgiving, July 3rd. Avoid trading half days — thin volume, unpredictable behavior.
Best Time to Trade
9:30 – 11:00 AM ET
Opening range gives the most directional setups. Highest volume, tightest spreads, most institutional participation. The first 90 minutes of regular session is where most day traders make their money.
Order Types
Order
Market Order
Executes immediately at the best available price. Guarantees execution but not price. In liquid large cap stocks the fill is usually at or near the quoted price. In thin stocks or fast markets, slippage can be significant.
Order
Limit Order
Executes only at your specified price or better. Guarantees price but not execution — if price never reaches your limit the order doesn't fill. Best for entries at key levels where you want precise pricing.
Order
Stop Loss Order
Triggers a market order when price hits your stop level. Used to limit losses on an open position. In fast markets stop orders can fill significantly below your stop price (slippage). Stop-limit orders add a limit to the stop but risk not filling at all.
The NQ futures contract tracks the NASDAQ 100 — so understanding how the NASDAQ works directly applies to your NQ trading. A rising VIX, weak A/D line, and small caps lagging are all warning signs for NQ longs regardless of what the chart looks like.