Tuesday, April 3, 2012
General: How to invest in stocks
Many people trade in the stock market with the same chance, but few percent of them make money in stocks. Many of these people, who don't earn enough return, have enough information about investing in the stock market. They make common mistakes and you should avoid them by having a high level of market understanding.
There are two analytic methods for investing in the stock market, technical and fundamental analysis.
Technical analysis is based on prices and volume. Technical investors believe price and volume interpret everything in the market. They study charts for forecasting of future stock price or financial price movements.
For learning technical analysis academic knowledge isn't required, with every level of knowledge you can learn it.
Fundamental analysis is a stock valuation method that uses financial and economic analysis to predict the movement of stock prices.
To begin investing in the stock market, you must choose a stock broker. A stock broker performs transactions in financial instruments on a stock market as an agent of their clients.
The best advice you can recieve is practice makes perfect. In the investment business, paper trading is how we all start. Pick a couple of companies, make a note of their price, the date, the reason why you want to buy them and then start following the stock