Novice Investing - Getting Started in Investing

Date: Thursday 28th 2008f August 2008 12:58:32 AM

Last Modified On 10/6/06 09:44

Getting Started

Our goal here is to beat the market return by combining the power of fundamental analysis and technical analysis. Our methodology requires about 80% fundamental analysis and 20% technical analysis. We organize the getting started thread into several pages for easier reading and to enable users to stop for a break every now and then. It is also followed with Technical Analysis section which we feel is important tools for individual investors.

Getting Started part 1

Why should we invest? What is investing? Why should you bother? The first part of this five-page series will explore the benefit of investing and what it takes for average worker to be millionaire.

Getting Started part 2

In this part, we will explore different investment vehicles and common investing pitfall. We analyze which vehicles will enable you to be millionaire by retirement age.

Getting Started part 3

We will analyze the methodology of determining fair value. Furthermore, this page will bring you some investing jargon that is essential before you start your investing journey.

Getting Started part 4

This part will explore the basic components of an income statement which will be used in finding out undervalued investment.

Getting Started part 5

This page will explain the importance of predicting the future and a general tip of constructing a pro-forma income statement. Most of our fundamental analysis will be focused on constructing pro-forma income statement and determining the fair value of an investment.

Technical Analysis

A lot of investors will scoff at Technical Analysis, dismissing it as a mere mumbo-jumbo. Not so here. While no one can predict the future with 100% certainty, one can make better prediction by equipping himself with short-term tools such as Technical Analysis.

Do you look at your rearview mirror when you are driving? You betcha. Do you have to look at the car in front of you when driving? Of course. The moral of the story is that investors need both the past and the present data to predict the future.

Technical Analysis part 1

Technical Analysis is the study of past price and volume movement of stocks to predict future behavior. In part one, we will look at support/resistance and volume analysis to determine future direction of a stock.

Technical Analysis part 2

In part two, we will explore the uptrend/downtrend line. A few examples are given to illustrate the point.

Choosing A Broker

Once you are ready to invest, the next step is to choose a broker. Different brokers will offer different features for different kind of investors. Click here for broker comparison.

Active Discussion

You can go to our discussion board to post your thoughts and perhaps obtain a valuable investing idea.

Web Resources

You can view the useful web resources that we find helpful for your stock analysis. Please view it here.

Articles to get you moving...

Learning From Peter Lynch Part III (last updated 09/19/2006)

Learning From Peter Lynch Part II (last updated 09/13/2006)

Learning From Peter Lynch Part I (last updated 09/11/2006)

Embracing Uncertainty (last updated 06/01/2006)

Investing For Beginners (last updated 03/28/2006)

Beating The Market With Covered Calls (last updated 03/12/2006)

The Importance of Positive Net Cash (last updated 03/03/2006)

Turnaround Investors and Patience (last updated 03/02/2006)

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