Search your broker’s website and you are most likely to find that it has an education tab. Click on this tab on the website of your broker and you will come across articles that will educate you on the various financial terms used in the markets and also about the associated topics. Go through these articles and you will soon be in a position to interpret the trade lingo, technical words and their explanations, charts showing the performance of stocks over a period of time, the latest news in national and international markets and so on.
All these tools are meant to enlighten and empower you to do your own research and make informed decisions. Even if the recommendations of your stock broker are based on rock solid experience, your own research would further confirm the correctness of your broker’s recommendations which will boost your own confidence in charting your own course and taking informed and independent decisions.
No body can succeed in any business unless one delves deep into its intricacies. So once you decide to jump into the stock trading wagon, you must start your own study and research in stock market trading. The website of your broker and other sites on the internet contain stock market research tools such as, symbol finder, quotes, charts, latest news flashes, articles, tutorials and much click here.
Charts, for example, are very helpful tools that every successful investor needs to study. They show the graphical trends of the stock you want to trade. The charts are updated continuously on a daily basis to inform the investors what the stock market holds in store for them.
The most widely used charts in stock markets are OHLC charts, which show the Open, High, Low and Close positions of a stock of a particular company or the entire market. These charts are further classified into two types-the plain vanilla and the candlestick charts. These charts are set within a time frame, which can be months, days, hours or even minutes. They show the high and low values, the opening and closing prices and the trading volume of the stock within a given period.
The news flashes show the latest developments in the stock market world. They provide news related to companies and important decisions taken by their managements, which in turn may have strong bearing on the value of their stocks. You may come across news about the new listings on major stock exchanges. It goes without saying that such news flashes will help you decide on the more valuable stocks for investment.
For example, the news about the commencement of operations of NASDAQ ETF market from October first 2007 may induce an investor to plan investing in exchange traded funds at NASDAQ. NASDAQ ETF Market, the newsflash informs, is ‘an important development in the evolution of the ETF family of products… It underscores NASDAQ’s commitment to ETFs and those who invest in them’. Once you get to see this news item, you may try to find out the individual stocks that have been listed in this category.
You should analyze the performance of each stock by studying its financial reports. For this you can read the comments of the financial analysts and experts in various news media. You can study the charts showing the performance of the stock you select. Your own research may, thus, give you the advantages of investing as an ‘early bird’ which would mean that you can buy the stock at its initial price. So by the time it becomes popular and before the other investors realize its importance, its price may have risen and you could find yourself in a position to make good profits. In fact by doing your own research, you learn valuable tips and tricks of the trade that experts loathe to divulge. The deeper you go into the ocean, as the saying goes, the more precious gems you find.
For example, your own research may help you find penny stocks, which yield high returns over shorter span of time. There may be low valued stocks of upcoming and promising companies whose strong and strategic performance may bring in huge profits.