1. Know your investment style - Are you bullish or bearish? Watch the video, "Market Mentalities: Bulls Vs. Bears" (from Investopedia.com) and learn which investment style suits you based on your personality.
2. Know how the market is measured - where is the market now?
3. Pick a familiar product, service, sector, industry, or/and company:
· Check the news.
· Find a company by sector/industry that provides a product or service familiar to you.
· Know the stock style to use.
4. Research product, service, sector, industry, and company to see where the market is developing.
5. Know when to buy or sell:
· Have a plan.
· Read the trends.
· Analyze stock charts
S&P 500 -- Made up of 500 of the most widely traded stocks in the U.S., S&P 500 represents about 70% of the total value of U.S. stock market.
Dow Jones -- Dow Jones includes the stocks of 30 of the world's largest and most influential companies.
NASDAQ -- NASDAQ includes more than 5,000 companies and some of those are not based in the U.S. It is known for its large portion of technology stocks.
Seasonal/General Market -- Guide to market fluctuations.
Moving Averages -- Simple and Exponential stocks moving averages.
Candlestick Charts -- Guide to candle stick chart option.
