Introduction

  Some methods to find good stocks

The first thing a newbie in stock market should understand is stock is not just a ticker symbol or a paper piece; there a an actual company behind this ticker or the stock certificate. Once this primary knowledge is recognized  the next this you should know is difference between speculation and investing. When we say stock market the first picture coming to any person will be candlestick chart and graphs. This picture about stock market should be corrected. Here you should have a rational thinking about the market. So lets dive into learning what is a market? "a regular gathering of people for the purchase and sale of provisions, livestock, and other commodities. A regular gathering of people for the purchase and sale of provisions, livestock, and other commodities." This is what we get when we search for the meaning. So stock market is just same as any other market but here we trade shares of companies; so what is share? No body in the world has got trillion dollars to start a big company at once or nobody want to risk their million dollars just for a single company; so at this moment they divide the company into small pieces of ownerships which can be bought by common public and form a large corporation like Apple or Google. Now here two things happen; First we could rise a huge amount of capital second we evenly distributed the risk to many people rather than concentrating to a single person. So back to the picture we mentioned above. The candlestick chart is the graphical representation of details about the latest selling and buying data about the share. The chart has actually very little to do with the company behind it. Now here we learn nothing about the chart. Now we will be going to what is speculation? "the forming of a theory or conjecture without firm evidence" this is what is happening these days in stock market throughout the world. You wont understand speculation this way, I will tell some examples of the result of speculation. The Stock crash 1929,2000,2008,2011,people lost money in stock market only because they speculated the market that it will go up for ever. So in this series we will be dealing with investing not wit trading which purely speculation.

       I will tell you an example. A person is tossing a coin; 3 times he got head, can he surly say the 4th time he will be getting head?. No absolutely not its just a 50 percent probability. This is the same thing happening in trading a stock. We cant predict what will happen even next second. It may be right or wrong just 50-50.So dudes we don't want to loose our hard earned money tossing in stock market. If we really want to build wealth the only way is investing. We will be discussing about investing in detail in the coming days.

     The next thing I want to tell is you cant start investing in a day. You have learn and acquire knowledge about the subject in depth. You just think logically, can you become an engineer in a single day? Or a doctor in a single day? or driver in a day? absolutely not. So you can't be a investor in a single day. The first step is accumulating knowledge. I would like to tell that ,I myself is not a good investor but would like to share my understandings and ideas here so that it may be helpful for you.

    Summary

1. Stock market is just like any market; here stocks or pieces of ownerships of companies are traded.
2. Trading is speculation based; you may or may not be wrong.
3. Earn knowledge about the subject. Its not simply opening a trading account and buying stocks.