Stock investment is a very old financial vehicle with great potential for the financial market to earn money for the long term; everyone should know this for a wealthy lifestyle.
Amsterdam’s first stock trading was created in 1611 and spread to other countries. A group of men started to buy and sell stocks in association in 1700 in the USA, which grew and eventually named New York Stock Exchange (NYSE). Many stock exchanges are available worldwide like Nasdaq, S&P500, Dow Jones Industrial USA, Hang Seng stock exchange Hong Kong, NIKI Japan, DAX, CAC, FTSE 100, KLCI, KOSP, KLCI, Nepse (Nepal Stock Exchange), etc.
Table of Contents
Stock Analysis
There are a lot of ways for market analysis. Before analysis, find out your personality which is suit for you. Are you a short-term trader? You would like to trade for short-term Intraday for a week or so by using swing strategy. You can follow for the technical analysis. Are you a long-term investor? You don’t care for the short-term market movement; you are more passionate and possibly catch big market moves and earn big bucks. You should go with Fundamental analysis and try the market.
Technical Analysis
Technical analysis used for short-term trading, technical chart, stock chart, price action, candlestick, line chart, moving average, RSI, and Bollinger Band are the popular technical indicators widely used these days. Also, there are hundreds of different indicators. Chartists try to predict the market using indicators or other terms like trend line, support resistance, and price action to see the probability of moving the market. Short-term traders are not necessary to use the company’s fundamentals. Technical analysis is used most of the time for the trending market, i.e., buy high and sell very high is the modern ethic of the technician. News, buyers, and sellers’ sentiment takes a vital role in very short swing and intraday trading.
Fundamental Analysis
Fundamental analysis is used for long-term investors for at least six months to 5 years. Fundamentals say buy Low and sell High. There are many things to analyze the stock before buying. Like P/ E ratio, EPS, book value, price to book value, enterprise value, etc.
Warren Buffett, the greatest investor of all time, says the best time to invest is now, and the best holding time of your investment is forever. His best two rules are:
- Don’t lose money
- Don’t forget rule no: 1
Earning Potential
Many legend entrepreneurs, philanthropists like Bill Gates, Warren Buffet, Mark Zuckerberg, Jeff Bezos, Elon Musk have a billion-dollar business and Billion Dollars Net-worth; they all grow their money by financial investment same proportion as they earn from their company. The market ups and down shows a huge impact on the billionaire’s net worth. Market up will make more millionaire than anything else and lose millionaire status while market down.
