Market Basics

Welcome to Market Basics. In this section we will take a closer look at the process involved in choosing a particular stock for investment or even a quick trade. Anyone interested in making profits in the stock market faces a daunting learning curve, but doing some homework in advance can make things much easier. By the time you’re done with this section, you’ll have learned timeless principles that will give you a good understanding of how things work and where to put your money.

When deciding whether or not to purchase a stock, both the fundamentals of the company and the technicalities of the chart should be analyzed. Fundamental analysis focuses on the company’s true market value, while technical analysis is used to identify certain trading patterns to forecast the stock’s future direction. There is much to learn from both of these methods and it’s crucial to fully understand their use to maximize profits.

Market Basics Include:

What is Fundamental Analysis? Qualitatively Analyzing the Company Qualitatively Analyzing the Industry Introduction to Financial Statements The Income Statement

The Balance Sheet The Cash Flow Statement Overview of Financial Ratios Chart Patterns