How to Invest in Stocks
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Picking a Stock Investing Approach
How you invest in stocks will depend on your philosophy for investing. Or, in other words, what's your personal, logical belief about how to approach investing in stocks? For example, do you like the idea of stocks that are increasing their earnings quarter after quarter? Then you will probably want to invest in growth stocks. If you want to be in a stock with a price that is continuing to move upward, then you want to invest in stocks that are trending.
That's one of the stumbling blocks to investors making really good stock investments: taking the time to decide on an approach. Don't worry, this is easier than it sounds, and Stock Trading Warrior is here to help.
Over 10 years ago I thought one of the best ways to invest money would be to subscribe to a newsletter, buy what sounded like the best stocks and watch my portfolio grow exponentially. Great idea, but it just wasn’t enough information to really succeed. I’ve also heard others say another way to find good stocks to buy is to pick up the Wall Street Journal and start investing in companies that sound interesting. That’s a great way to get started, but it’s just not enough to find good stocks to buy and to be really successful.
An investing approach is what are you going to be looking for in an investment. Here are the general kinds of approaches an investor can take:
- Use Company Fundamentals (earnings, sales, debt, etc.)
- Use Technical Analysis (the study of price and volume)
- Use both Fundamentals and Technical Analysis Combined
Many investors use fundamentals as a way to find stocks they like and some of them only use technical analysis. As a suggestion, consider using a combination of both philosophies to improve your abilities for successful trading.
To expand on the basic approaches of fundamentals and technical analysis:
Other Technical Analysis Setups
- Technical Analysis Stock Trading (the study of price and volume)
- Both Fundamentals and Technical Analysis Combined
- Any of one of the two categories above combined.
Whichever approach you decide to take you'll need a strategy to use to follow for picking great stocks. You may want to spend a bit of time reading about different stock investing approaches before you decide on one. You can look at a list of trading strategies with descriptions over at:
A List of Stock Trading Strategies.
Or, if you prefer, go on to learning about how to
Create Stock Trading Systems in 10 Easy Steps.
After you narrow down your stock investing approach, you can move on to the Secrets to Stock Market Strategies to identify the time you have to spend on stock market investing and a secret that will increase your ability to capture a profit.
Move on to the next Action Step to a
List of Stock Trading Strategies.
Secrets to Stock Market Strategies.
How to Invest in Stocks to Stock Trading Warrior Home.