Introduction

Traders analyze the stock market, individual stocks, and companies with the goal of determining what stocks to buy and sell in order to make a profit.

There are two primary kinds of analysis:

• Fundamental Analysis – A company’s fundamental data ( earnings, revenue, etc.) are analyzed to determine a company’s valuation and future valuation.
• Technical Analysis – A stock’s historical price and volume are analyzed using a variety of techniques in order to estimatie (not predict) the probalility of future price movement, so that we can determine high probability entry and exit points .

There are three primary types of trading by time frame:

• Day Trading – Buying and selling stocks in the same day and never holding a position overnight.
• Swing Trading – Entering a position and holding it for several days or weeks.
• Position Trading – Holding positions for months or years.

This information is well covered on many investing web sites. I recommend Investopedia. Here is the direct link to it: Investopedia – Investing.

We will not try to duplicate this information here. We will cover only some specific subjects and topics that we think will be of particular interest to traders. For example, the Risk Management page contains the math to do position sizing and determine stop loss amounts, and the Fundamentals Analysis page covers the meaning of some key financial metrics and ratios such and P/E and PEG.