Over the next couple of posts I will be writing introductions about different technical analysis methods and charts, but for now some general information about stock background research.Start up by creating a list of potential stocks you’d like to trade ( whether buy or sell short ). Check if they are not on their way to going bankrupt, check their annual reports, etc. Make sure that when you’re finished you won’t have too many stocks to go deeper with. Now Check the general economi...
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Before you start trading you should get familiar with different aspects and types of trading. And before setting your financial goals , there’s one important term you should know about - Pattern Day Trading. This term sets some limits to your day trading activities if you are starting with just a small capital, lets say $5k or less. If you think you make 10 trades per day without any problems with your $5k starting capital, then think again. Doing 10 trades per day would make me a Patter...
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When choosing stocks to buy, many of us like to think that the possibility of „our” company going bankrupt isn’t there. Probably that’s ALMOST true. But better safe than sorry, so you need to conduct some analysis from this perspective as well, here are couple of things you should note when checking out a certain stock. Dept/income ratio. Most of the on-their-way-to-bankruptcy companies have a debt/income ratio more than 10. According to analysts ratio around 8 is good, but a doubble-dig...
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