Wall Street Investing and Finance for Beginners

News – Gather and get all the information concerning the stock market, what kind of headlines does the stock generate? Both good news and bad news can affect a stock’s price before any changes trickle down to the income statement or balance sheet.

Growth - Even the cheapest stock isn’t worth buying if the company can’t increase its profits. Rising sales, profits, and cash flow suggest the company’s products sell well enough to increase its penetration of the market.

For instance, you can say that for every 5% increase in the value of a certain stock, you will sell 25% of your stocks.

When a Company is growing - If you have seen remarkable recent growth in a company’s size, profit and stability you need to buy fast. Remember, many other investors are studying the company just as you are doing. If they start buying before you, the price will start increasing. That is why you need to start investing early, but not too early. To minimize risk, you can have a predetermined threshold.

Price Action Trading - With this method, you will only consider the price actions.

Pattern trading - As the price of the stock goes up and down, you will start to notice a pattern over time and can even see them on the charts. You will be able to use pattern trading to determine if your day stock is going up or down so you can act accordingly.

News Playing - This is a method where you will follow the news releases that show up during the day. You will decide to buy and sell based on these news releases and it is going to be closed within one day as well.