The purpose of doing stock market research is very straightforward. Your objective is to do research in order to buy and sell stocks in a profitable fashion. Analysis of stock market trends can include both fundamental Stock analysis as well as technical analysis of the stock market.
Although there are many that still research the markets manually, the growing trend has been to automate stock research using stock analysis software. Most of that software is Stock technical analysis software and can perform many functions such as stock volume analysis as well as scanning thousands of stocks for key factors.
Most all stock research falls under the classification of “stock market timing”. Stock market timing simply means finding the best time to buy a stock and finding the best time to sell a stock. Stock market timing is used by both long-term investors as well as short-term traders and stock scalpers.
In order to successfully trade stocks the risk of each stock transaction must be measured against the potential reward. This is one of the key factors that many beginners fail to realize and should be encouraged to pay more attention to. When you use good risk control measures you can obtain substantial profits while still keeping your risk and a minimum. Failure to recognize the importance of risk control and use the discipline necessary to exercise it can be a recipe for disaster in stock trading.
Mastering stock market research, quite naturally, does require training. Learning to properly research stocks prior to trading them will help you avoid the “leap before you look” syndrome.
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