| Stock trading strategies are important when you are | | | | afford to ignore the fundamentals because of the |
| trying to build a successful stock portfolio. Ultimately, | | | | short term trading. This can be a risky way to trade, |
| you will make your own strategy, but understanding | | | | especially if you don't know what you're doing. |
| different types of research and analysis will help you | | | | You may decide to use one or the other, or you |
| build solid stock trading strategies. | | | | could use a little bit of both. It is up to you and |
| Fundamental Analysis | | | | depends on your stock trading strategies. |
| There are two main types of analysis, fundamental | | | | Stock Trading |
| and technical. Fundamental is just how it sounds. You | | | | Stock trading, as previously mentioned, is short term |
| are researching and analyzing the fundamentals of a | | | | buying and selling. Some people try to make it as a |
| company. You will look into the corporation and what | | | | stock trader as their career. Some people succeed, |
| they sell. You will look at the history of how well | | | | many fail. It is tough to do well. Many people believe |
| they are doing. You will analyze financial statements, | | | | that stock traders end up breaking even in the end. |
| and so much more. | | | | You can try trading for yourself, but make sure you |
| Fundamental analysis is great for a buy and hold | | | | are well prepared. |
| strategy. If you plan to build a strong portfolio over | | | | Buy and Hold |
| time, you will most certainly need to analyze this | | | | The buy and hold method is just the opposite of |
| way. Using ratios and financial statements will help | | | | trading. It is long-term investing. Usually you will hold |
| you understand if a corporation is a good buy. | | | | investments for at least 6 months, and sometimes as |
| Technical Analysis | | | | long as a lifetime. This is the stock trading strategy |
| Technical analysis requires no knowledge of a | | | | that many regular investors use to build wealth over |
| company other than its past stock prices. You don't | | | | time and invest for retirement. |
| need ratios and financial statements, just charts. You | | | | Before you choose any of these stock trading |
| will look at charts of the past prices and analyze | | | | strategies and start using them, make sure you |
| them. There are lots of trends and recorded ways to | | | | research and learn about them well before you start. |
| predict where the price will go in the future. | | | | Once you've chosen an angle to take, you can start |
| This type of analysis is most often used by stock | | | | investing your money and making it grow. |
| traders who buy and sell short term. They can more | | | | |