2006-08-22 05:48:27 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
There are two approaches to analysing a stock. 1. the fundamental approach 2. the technical approach.
1. fundamental approach: you study the balance sheet and the income statement and read all the footnotes in the annual report. You evaluate the price of the stock in relation to the expected growth of the company, the dividend, and the earnings and its relative price as it relates to others in its industry. Then you make a decission as to whether it is worth buying or not
2. technical approach: you ignore all the above. Instead you look at the price action and volume information as to how the stock has been trading. Base on the pattern of price action you make a decision as to whether it is a buy, or a short sale or unattractive.
1. the standard reference to the first approach is: Security Analysis by Grahm, Dodd, & Cottle
2. the standard reference to the second approach is: Technical Analysis of Financial Markets by John Murphy
2006-08-22 08:51:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Hi, i know what your question means. i also think stock market is a nice place for investing.
I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.
http://www.bernanke.cn/stock-trade/
Best Wishes && Good Luck!
2006-08-24 00:50:11 · answer #2 · answered by stock_trade_expert 3 · 0⤊ 0⤋
yes, you should learn 3 things:
fundamental analysis( economic report,management,competition,... tell you what to buy
TECHNICAL ANALYSIS( CHARTS+ technical indicator) tell you what to buy
sentiment analysis (bull/bear ratio, put/call ratio) tell you how moody investor can affect your investment too
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.
http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:
fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy
technical analysis==(chart+indicator)>> when to buy
Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live
At the age of 32. my 401k is amassed 73000 in 401k, 30000 in taxable account
2006-08-23 00:16:10 · answer #3 · answered by Hoa N 6 · 0⤊ 0⤋
Get Peter Lynch's book "One Up On Wall Street". It is the best start you can get. Check it out from the library.
2006-08-22 14:02:19 · answer #4 · answered by d1jensen 2 · 1⤊ 0⤋
read tips on stocks and investing that will help you on this site
2006-08-22 13:22:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋
which stocks?
2006-08-22 12:54:16 · answer #6 · answered by helix.helix 2 · 0⤊ 0⤋