- Analyze the fundamentals of the company which stock you intend to buy. Read the latest news about the company and get familiar with company competitive advantages and weaknesses. This part of analysis includes researching and comparing the company to its biggest competitors. You should cover financial information as management ability - check what insiders are doing lately with stocks - are they buying or selling?
- Before investing in stock market get familiar with some more technical data. Determine the trend of the stock, define support/ resistance areas, get familiar with market trading information, like 52 week high, low, average volume, and so on. Use different stock charts in different time frames. Carefully read the financial calendar of company events, like when there will be the next release of quarterly earnings for example - in such case the stock is often exposed to much higher volatility than normally.
- Join community forums also. They give you the opportunity to ask a question, get a second opinion or submit your trading idea to others. Can be very helpful.
http://www.stocks-for-beginners.com/investing-in-stock-market.html
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Last edited by osmand on Sat Jan 14, 2012 10:47 pm; edited 1 time in total