Learning the Stock Market

Question

I would like to learn how to "read the market" and read about certain stocks that I'm interested in. For example, If I like stock "xyz" what are the signs I should look at to see if it's a potential buy? I read on a post that someone said to make sure for 4 quarters consecutively they should be in profit, others say differently, or that the volume should be so high, or the P/E ratio should be below 17 etc...

Also, what website or book would you recommend for a total beginner to use to just get a decent overview of what these terms mean and how to look at a chart and see where it's going? I looked at a financial statement of a company that I'm very interested in and it might as well been written in Greek. If I can know just how to basically read it I would be happy.

I'm not looking to be an expert or do this for a living and I dont want to study something extremely/very detailed. Something like a "laymens terms for the stock market" class or book I need.

Thanks for all your help.

Answer 1

This is the best for you :-

http://www.sharemarketbasics.com/

Kalra

Answer 2

Read the newspaper IBD and some of the books written by William O'Neil, its publisher.

A website that uses some of the same techniques is

Canslim.net

Be cautious when taking links, however. This category--investing--has a lot of people offering scams and putting in links which I suspect are dangerous and will steal your computer info and put in a virus. The other categores that I answer questions in are not as dangerous by a long shot.

Answer 3

You have to follow your instincts at share market. To have a precise instinct it should be based on knowledge. If you follow a share steadily you can make assesments. For beginners it is always helpful to have a good broker who would listen to you patiently and help you with your hard earned money.  

Answer 4

For beginers, try any of Jim Cramer's books. Before you invest any real money, setup a sample portfolio in any of the sites that offer it and watch for trends.  Pick a diversified basket of  5 stocks in different sectors and watch them, research the companies and their industries. See how they stack up to their competition.

a good site to set up a sample portfolio might be microsft money at msn.com or cnbc.com or marketwatch.com or many others.

Answer 5

duno