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Saturday, July 19, 2008

Stock Market

Stock market is a place where people do their trading of the stocks they are holding.

There are many ways to invest but which is the best way, you got to do reasearch and choose one that suit you best.

Some will buy low and sell high, so they make money when the stock price shoot up. How they know when is low and high? They based on the chart. This type of investing is called technical analysis.

Warren Buffett will buy undervalue stock and hold till its overvalue. That mean he also buy low and sell high, but he did calculation before selling at a high price (overvalue). He will hold onto the stock he bought and receive dividend payout by the company as long as its not overvalue. He will also study the financial status and management of the company. This way of investing is called value investing and also fundamental analysis.

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