If you are looking for a brief Stock Market Tutorial you are going to have to be more specific. There are two ways to approach stocks.
1. Fundamentals
When it comes to most stock market most people focus around fundamental analysis. That is because the common wisdom is if a company is fundamentally strong then sooner or later it's stock will follow.
And over the long term that does seem to be the case. So most fundamental investors will look for fundamentally strong stocks and buy and hold those stocks for the long term. And if the company offers dividend paying stocks then so much the better.
2. Technical Analysis
Another school of thought is technical analysis. While it might be nice to think that the short term ups and downs are all about how much money the company made, it really isn't.
Over the short term stocks are actually more influenced by supply and demand. Since there is only a limited amount of supply it all comes down to demand. The more people that want to invest into the stock the more it will go up, the less people that invest into that same stock the less likely that the stock will go up. People are predictable so patterns arise from this which can be studies and traded.
So, which one is better? Well it depends on your goals. Everyone is different and requires a different strategy.
I will say this however, the shorter the time frame is the more powerful technical analysis becomes and vice versa. So if you want to trade stocks over a few days then studying price patterns and how to play those patterns seems like the smarter move.
But if your goal is to buy strong companies and then hold onto them over the long term then it is a much better idea to focus on fundamental analysis instead.
1. Fundamentals
When it comes to most stock market most people focus around fundamental analysis. That is because the common wisdom is if a company is fundamentally strong then sooner or later it's stock will follow.
And over the long term that does seem to be the case. So most fundamental investors will look for fundamentally strong stocks and buy and hold those stocks for the long term. And if the company offers dividend paying stocks then so much the better.
2. Technical Analysis
Another school of thought is technical analysis. While it might be nice to think that the short term ups and downs are all about how much money the company made, it really isn't.
Over the short term stocks are actually more influenced by supply and demand. Since there is only a limited amount of supply it all comes down to demand. The more people that want to invest into the stock the more it will go up, the less people that invest into that same stock the less likely that the stock will go up. People are predictable so patterns arise from this which can be studies and traded.
So, which one is better? Well it depends on your goals. Everyone is different and requires a different strategy.
I will say this however, the shorter the time frame is the more powerful technical analysis becomes and vice versa. So if you want to trade stocks over a few days then studying price patterns and how to play those patterns seems like the smarter move.
But if your goal is to buy strong companies and then hold onto them over the long term then it is a much better idea to focus on fundamental analysis instead.
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