The digital era · 2000–today
2000
The dot-com bubble bursts
Internet stocks crash after the Nasdaq peaks in March 2000.
Online brokers and the internet boom drew millions into trading, and many bought and sold within the same day. The Nasdaq peaked on 10 March 2000, then lost about three quarters of its value by late 2002.
In 2001 US regulators set the pattern day trader rule, requiring $25,000 in accounts that day trade often.
💡 Why it made sense then
Excitement about a real new technology ran far ahead of what the companies would earn.
Ideas it gave us
- 🏗️ Market bubble
A market bubble is when prices rise far above any reasonable measure of value because buyers expect to sell to someone else at a higher price, until confidence breaks and prices crash.
- 🌍 Market cycle
The market cycle is the repeating pattern of expansion, peak, contraction and recovery in prices and in the wider economy.
- 🎯 Day trading
Day trading is buying and selling within the same day to profit from short price moves, closing every position before the market closes.
Practise with $10,000 in play money
Free. No real money involved.