Guidelines to Follow Before Investing

Many people invest in the stock markets with the same chance of making money. If you want to increase your chance then do a analysis of the stock market & the trends of various stocks being traded on the market. This analysis will help you avoid some of the common mistakes people usually make while investing in the stock markets. There are two analysis methods currently available that one can use. They are – Technical analysis based on price & volume & fundamental analysis based on financial & economic analysis. Advantage of technical analysis is that it does not require any specific knowledge or education to be able to do that. While you have to have some knowledge of economics & business to carry out fundamental analysis.

Get some great investment management software. It will save you time & effort trying to figure out best way of doing things. These softwares are easily available on the net & they cost very little.

Warren Buffet has suggested that investors in stock markets should know basic accounting principles & understand annual reports. So get an education before you start to invest.