What did you learn about stocks and the stock selecting process?
Investing in the stock market takes time, patience and knowledge of the market. There are many different ways to trade. The market is a private or public market for the trading of company stock and derivatives at an agreed upon price. The stocks are listed and traded on stock exchanges and they facilitate the exchange of securities between buyers and sellers. (Gitman, l &Joehnk, M., 2008)
I learned there are two different way to analyze stock technical and fundamental. Both methods are used to study the financial markets. Technical analysis focuses on the price movement of a security and uses the data to predict future price movements. Users of this method believe there is no reason to analyze a company’s financial statements because that information is accounted for in the stock’s price. When using technical analysis, traders will analyze three types of trends to determine direction:1) Uptrends describe price direction of an asset when the overall direction is moving upward and the goal is to identify a strong uptrend to profit from until if reverses.2) Downtrends; once established investors are very careful about entering into new long positions. These are best to stay away from as they can last for short to long periods of time making them a gamble. 3) Sideways happen when the price is traveling between strong levels of support and resistance, this stale mate is generally seen as a loss and are normally only invested in by those who are company loyal, i.e Apple until recently. (Gitman, l &Joehnk, M., 2008)
This method uses three different types of charts line, bar and candlestick. The lin ...