There is no other way to make money available market, one must first learn the fundamentals . to find out the fundamentals one cannot simply attend a stock market training school and become an expert. One must follow the DIY strategy (Do-It-Yourself) to find out stock investing. When it involves stock investing, DIY is that the only alternative. Why?
Because on one side we’ve people for whom share market is like an alien world. On the opposite side, some people earn money in stocks as if it’s an easy job.
There has always been this divide prevailing among people, and this divide is merely growing. Why? Because, people that don’t understand shares, treat it as a roulette table. and other people whose skills to earn money from the stock exchange prefer to stay their knowledge as a secret. So how a standard man can learn and earn money in the share market? the solution is simple…DIY (Do it yourself). How? this is often where this text will prove its utility.
But there’s another limitation. What? Be able to give time, to find out & master stock exchange skills.
This is one of the most important steps in stock investing. What is stock investing for investors? “Buying good stocks at the right price, and then holding it for long term“.
Hence, to earn money in the stock market, a person needs to answer the following three questions:
- If this business is good: How to know if the business is good or not? One must go through stock market training. In fundamental analysis one evaluates the size of its business, future growth prospects, financial health, etc. Read more about fundamental analysis here.
- What is the right price to pay for this stock: What is the right price? Price at which one can consider buying a stock. How to know about it? By stock market training. If the current price is below the intrinsic value, it is the right price to buy a stock. Read more about the concept of the intrinsic value of stocks.
- How long should I hold it: Generally speaking, a stock must be held for the long term (more than 3 years). Period. But there can be aberrations from this rule. This aberration will come into play when the goal is reaching earlier [Please see the process flow shown above].