Stock Market Information
Questions

The best advice I have is learn all you can about how the stock market basics (if you don't know them already), learn how to invest in the stock market and the most important is finding a stock investment strategy that fits your investment style. There are two basic theories of evalutating the stock market, which are fundamental and technical.

The fundamental anaylsis is that the stock market can misprice stocks, but eventually the correct price will be obtained through time. The focus is in finding these undervalued companies and purchase them. In turn, they sell the stock when the stock is fully-valued or even over-valued.

Technical anaylsis relies on charts and indicators that revolve around supply, demand, price, volume and time such as moving averages, volume and relative strength of stocks just to name a few. There are many other technical indicators, which we will discuss in later sections.

There has been and probably will always be a war between the styles on who is using the best style. Both have there merits, but in different ways. Technical indicators can be useful for short to medium term moves in stocks. Fundmental and quantitative analysis can do a good job at spot ting strong companies. Unfortunately, this doesn't mean that the companies stock price can't have a lull period of a couple years where the price action doesn't warrant purchasing the stock.

A very good way to make sure you stay on track with your investment style is to log all your stock purchases and sales. When you buy and sell stock make a notes regarding why you purchased or sold that stock. You'll be able to recognize the differences and patterns of your stock purchasing and selling behavior.