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Trading stocks

If you are looking to make some extra cash and learn about equities, shares and stocks then this article may give you significant value. Have you always wanted to know how to trade stocks, just like those at wall street? Well thanks to broadband you can trade online, many brokers will even give you a tutorial on how to trade. Sounds great so lets start trading and make some money??

Not so fast, trading is more than just making some extra cash. If you do not know what you are doing then the market will suck you in and spit you out. Along with technical and fundamental skills you also need to have psychological skills, if you can master all of these two of the three to begin with, then you may begin trading. But what exactly are we talking about here?

Technical trading involves looking at charts, (mainly candle stick charts) studying the history of the stock and identifying where the stock is headed by determining the price action of the stock in question. You can find many tutorials on this online so make sure to take full advantage, a simple google search will have you on your way. Along with technical analysis a trader will need to understand the company they are investing in, this is where the fundamentals comes in.

Fundamental analysis involves looking at the companies books and evaluating their stock to see whether or not they should invest, companies will a lot of debt should be avoided unless of course you want to lose money, but something tells me you don’t want too. If you see price take a nose dive on the chart you can understand why by mastering the fundamentals. All publicly traded companies but show their books to the, there i say it ”public”.