Technical analysis is the art of identifying market price patterns to forecast future market price movements. The way you get rich in the stock market is by learning and learning more, and staying in the game. Since the stock market does not always go up, these books will teach you how to profit during bear markets or stock market corrections. You will find yourself referring back to them again to make sure you understand each concept as you trade and invest in the stock market daily. If a stock has an uncommonly high yield for that industry, there is usually a reason.
The way the stock market fluctuates is enough to keep anyone awake at night wondering about their 401k plans, retirement and their stock portfolios. Finding a good dividend paying stock is not just finding the highest yields, since that can be very deceiving. And the reason could be that the stock price recently fell dramatically and sooner than later, the dividend will be cut or eliminated.
Another benefit of good dividend paying stocks is that they are usually older more established companies and these companies will sometimes do a stock split, which means you end up with more stocks over time accumulating more dividends. Investing in companies that pay dividends and reinvesting those dividends along with stock splits can add up nicely. After reading this book, you will be as smart as any stock market advisor and competent to handle your own investments. Option trading can be very profitable and they can be used to hedge stock market volatility risks. Technical analysis can show you when to enter a stock or when to exit a position.
Right now there is talk about another housing bubble already and the stock market has certainly gone almost straight up. Most think the market has only gone up during this slow economic period because of Federal Reserve policy and when that changes, the market will correct by a large percentage. When you buy a call, you believe the underlying stock or index is going to go up in price by a certain date.
And when you buy a put option, you believe the underlying stock or index will go down in price by a certain date. Learning how to read a company’s annual and earnings report is crucial to understanding the financial health of a company and if you should buy stock in the company. Learning at least the basics of reading charts can be important showing you where the company’s stock has been and where it might be going.