There are only two ways to approach the stock market: fundamental or technical investing.
If you decide that you are willing to put the time and effort into making your own investment decisions you will ultimately have to choose a style that makes you most comfortable.
Everyone wants to invest to make money, obviously, but an investment style that is consistent is what you are essentially looking for.
Consistency is key, otherwise it's just gambling.
Too many people are out to gamble with the stock market, basically turning it into a casino.
This is the main reason why there are so many skeptics because they do not see it as a form of investing but as a form of gambling.
They have no strategy and no knowledge about the stock market, its volatility, and the risks involved.
These kind of people will certainly lose money in the long run.
Don't let this be you! Knowledge is power! If you can reduce your risks, would you take the next step and find out which investment style is best for you? The key to being confident in your stock picks and strategy is by having more information and more knowledge.
Think about that.
Would you have confidence in your work if you did not have the skills and knowledge to do your job? The only way to learn about investing is if you take the Fundamental or Technical route.
Here are a few tips on the two styles: Fundamental Investing: Fundamental Analysts believe in the underlying financial strength of a company.
The financial strength of a company can be found in its financial statements which contain the Income Statement, the Balance Sheet, and the Cash Flow Statement.
This style is also used to value invest - finding companies at bargain prices.
It takes a lot of learning, but it is proven.
This is the style chosen by the great ones such as Warren Buffet, Peter Lynch, and Ben Graham.
Technical Investing: Technical traders believe the performance of a stock is based on the company's ongoing "charts.
" The charts are the graphs of a stock's movements as it occurs over time.
Technical analysis is the ability to analyze a stock's charts in order to predict future price moves.
Many people prefer to go this route as a day trader.
There are many different kinds of charts for any one stock; it is up to you to decide which charts are most beneficial and most consistent.
That can only be done with research, information, knowledge, and trial and error.
Although the two are different in almost every aspect, the style that makes you most comfortable as an investor is what it all comes down to.
As always, investing carries risk.
There is no way to get around it.
However, having knowledge in a style, or both, can help you mitigate those risks tremendously.
Take the next step and learn about it! Learn more here: