Introduction
Welcome to Stock Market Basics, specially written for stock market rookies.
In seven, free, bite-sized training sessions linked to below we’ll take you through the must-know information to get you started in the markets.
We hope you’ll find our tips profitable – although there are no guarantees… well, there is just one guarantee; the majority of traders have always lost to the markets, and the majority of longer-term investors have always underperformed. We guarantee this will continue! But the rewards for the market’s elite can be enormous, and every year a fresh band of market hopefuls starts out, a small number of them destined to join the ranks of the elite.
Let’s begin.
Lesson 1 - Stock Market Risk Reduction
Far from beating the market, most investors underperform. As many as 80 – 95% of people who try to trade stocks (as opposed to longer-term investing in stocks) lose money. Your training in stock market basics starts by looking at how the best market players reduce their risks of losing; because, if you don’t lose, there’s only one thing you can do, and that’s win!
Lesson 2 – Technical Analysis of Stocks
Unless you’re going to rely on a monkey throwing darts at a list of stocks, you’ll need a logical stock-picking strategy which works, and which you can operate on a rinse and repeat basis.
Lesson 3 – Stock Trading Rules
McDonalds is a fantastic business because each franchise operates with strict rules. The rules, not the people, make McDonalds what it is. What works for McDonalds is a good recipe for success in the stock market.
Lesson 4 - Fundamental Analysis of Stocks
Fundamental analysts buy stocks when they’re selling for less than their true value. How can you do this?
Lesson 5 - Combining Technical and Fundamental Analyses
Discover how the most successful market strategies in recent times have combined the “value for money” ethos of fundamental analysis with the “get the timing right” ethos of technical analysis.
Lesson 6 - Diversifying versus Concentrating in Stocks
How do investors decide how many stocks to own and how do traders decide the size of their trading positions?
Lesson 7 - Your Winning Personality
No, don’t skip this. Trading systems can make money on the stock market. If you’re the wrong type of person though, you’ll fail regardless of the system you use.
More – The Effect of Time on Money
You need to invest with a known purpose and understand the effect of time on purchasing power.
