The Stock Market TutorialThis stock market tutorial is based on value investing. And enhanced with stock chart analysis. The combined approach of fundamental and technical analysis makes for a more comprehensive investment strategy.It’s important to realize, that while a lot of information is considered when making investment decisions. Some factors carry more weight than others. By taking a thorough approach, we are less likely to buy a stock that doesn’t live up to our expectations. We need to “cover all our bases” but at the same time narrow our focus to the things that really matter. What will I learn?We’ll look at the most desirable attributes of a stock. Things that the market favors highly. If you know what the average investor looks for when they buy or sell a stock, it gives you an advantage.We start by defining the characteristics of the ideal stock. Then we use a stock screener to generate a list of stocks that meet our definition. Next, we use key performance indicators (KPIs) to filter out the weakest contenders and the stocks that don’t fit our strategy. Stocks that meet our KPIs will have their stock charts examined to see if they are attractive from a technical analysis perspective. Rigorous analysis is then applied to the remaining contenders. As you can see, stock selection is a filtering process. Our goal is to end up with investment quality stocks. We’re looking for the best of the best. By the end of the tutorial, you should have a clear understanding of:
You will find it beneficial to read the recommended books. They will embellish your understanding and give you different perspectives. The Stock Market Tutorial – lessons: Lesson 1: How to Pick Winning Stocks |