Stock Market Overview: How to Get Started
I often hear, “How can I make money in the stock market?” Others ask, “Is the stock market safe?” Ambivalence about the stock market is a very common and understandable reaction. Learning to invest is a matter of parting with your hard earned money in the quest to learn how ...
Step One: Start With the Income Statement
The first document you should look at in analyzing a stock is the Income Statement. An income statement is an overview of how much a company has earned in a specific period of time. The time frame is most often either on a quarterly or annual basis. A business may ...
Step Two: How to Analyze the Balance Sheet
Once you have chosen a stock you think you might like to purchase, the next step is to thoroughly analyze the financial position of the business – a process referred to as fundamental analysis. There are three documents analyzed in conducting a fundamental analysis of a stock that represents the ...
Step Three: Make Money in Stocks by Using the Cash Flow Statement
Introduction In an effort to make money in the stock market, you cannot simply buy stocks at random. You do not want to buy the stock of a company, only to have it go bankrupt after you bought it. Thus, you need to first understand the financial condition of the ...
How to Know When You Should Sell A Stock?
It is a familiar story. You buy a stock, because you believe in a company, its fundamentals, and its product offering. It is a bull market, the stock rises, and you pride yourself on having picked a winner. The Dilemma Then the stock starts to fall. The stock steadily begins ...