Fundamentals of investing in stock markets

Fundamentals of investing in stock markets

Posted: lokov Date of post: 03.06.2017

Online Trading Academy has its roots in the largest trading floor in the Western US, founded in by Eyal Shahar.

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Independent traders needed training to be successful in their investments, and soon a teaching model was born.

Enriching lives worldwide through exceptional financial education. The stock market is where most new students at Online Trading Academy are most comfortable when they arrive.

fundamentals of investing in stock markets

They have traded stocks previously, either as individual shares or as components of a mutual fund purchased by their k. They understand the concept of owning a piece of a company, and betting on how well that company is going to do in the near term. These stock market basics are very comfortable to them. However, your familiarity with companies listed on the stock exchanges can actually be a disadvantage.

The problem with the fundamental approach is that by the time a company flashes positive signals for all these qualities, its price has already increased to reflect a positive view from the market. Educated traders follow a very different set of criteria.

These traders focus on a single consideration: Conversely, a great company will sometimes climb out of its comfort zone to a price where suddenly there are more willing sellers than buyers. First, the stock has to be actively traded — at least , shares in daily volume. Below that level you run the risk of being stuck in a position simply because there are no traders on the other side.

Stock Market Basics For Beginners

Finally and most important, rather than investing in the broad market you should consider following a few tickers and getting to know their trading range very well. This is a stock market basics approach focusing on price, remember. You simply want to identify the zones where supply and demand are likely to be out of balance, then buy or sell when price enters these zones.

Experience tells us there are large quantities of unfilled buy or sell orders at these price levels and, once the orders are filled, price will change direction regardless of what else is happening in the economy or the market.

We show a number of actual examples of completed trades that follow this strategy in our introductory Free Half-Day Class. Your browser Internet Explorer 8 or below is outdated and no longer supported.

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