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.
Technical Analysis
There are many subcategories in technical analysis. Here are the really important basics you need.
A look at the different types of charts that you can use to do your stock analysis.
The 4 different stages that all stocks and markets WILL go through.
Perhaps the most important factor that affects stock prices.
What it is and why it is so important to stock analysis.
A simple tool that will save you countless $$$.
Learn how volume affects the movement in stock prices. Also learn how volume can sometimes start and end a move in stocks.
Fundamental Analysis
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)
The well known tool that investors and traders use to see how cheap or expensive a stock is.
Earnings Per Share(EPS)
Quarterly Earning
Annual Earnings
Earnings Growth
Earnings Surprises
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.
Return from Investing Basics to Home Page
Additional Articles
Have you created your own stock watchlist? Learn the benefits of a watchlist and how to create your own stock watchlist