The Investing Basics
and Trading Basics
You Need to Get Started Right
Here are the investing basics and trading basics that you need. We will divide them into fundamental analysis and technical analysis.
If you remember from the foundation articles...
Fundamental analysis acts as a filter to find good stocks. We then use technical analysis to refine our entry and exit points.
There are many subcategories in technical analysis. Here are the really important basics you need.
Supply and Demand
Support and Resistance
There are also many analysis under fundamental analysis. These are the important basics you really need to start making money in stocks.
Price to Earnings Ratio(PE Ratio)
Earnings Per Share(EPS)
As you can see from the above list. What we are really interested is the earnings. The most important question is... Is this company making money?
If the company is earning lots of money and has potential to earn more money in the future...
Yes, the stock price will go up. That's what we are looking for. Focus on the earnings and potential earnings of a company and you won't go wrong.
The above are the essential investing and trading basics you need. There are other fundamental and technical analysis you can do. If you want to know more, read the additional articles below.
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