Understanding the Stock Market As you know, stock market is a place that people trade stocks in it. Today because of internet development we can trade stocks online. Now, how you can trade stocks? Stockbrokers perform transactions in financial instruments on a stock market as an agent of his/her/its clients. The main problem for a trader is to earn money by trading stocks in the market. Before trading there are three major methods: 1-Fundamental analysis Fundamental analysis is a stock valuation method that uses financial and economic analysis to predict the movement of stock prices. The fundamental information that is analyzed can include a company's financial reports, and non-financial information such as estimates of the growth of demand for competing products, industry comparisons, and economy-wide changes. 2- Technical analysis Technical Analysis is the study of prices and volume, for forecasting of future stock price or financial price movements. Technical analysis can help investors anticipate what is "likely" to happen to prices over time. Technical analysis is not an exact science. It's an art and takes considerable experience. But don't worry everyone with each knowledge can learn it. 3-Risk/money management Risk management is the process of measuring, or assessing risk and then developing strategies to manage the risk while attempting to maximize returns. Typically involves utilizing a variety of trading techniques, models and financial analyses. Choose a stock broker and then do an Examination trading period
