• Business

    Business Ideas

    ALL
    • In-Demand Businesses
    • Businesses That Never Fail
    • Best Passive Income Ideas for Increasing Cash Flow
    • Essential Tips To Start An Online Business
    • Best Websites To Buy Or Sell An Online Business For Free
    • Everything You Need to Know About Online Selling 
    • Current Business Trends: 9 Things to Keep in Mind
    • How to Open a Coffee Shop Business: A Comprehensive Guide
    • Effective Ways to Start your Business from Scratch 
    • The Main Types And Advantages Of Online Business
    Menu
    • In-Demand Businesses
    • Businesses That Never Fail
    • Best Passive Income Ideas for Increasing Cash Flow
    • Essential Tips To Start An Online Business
    • Best Websites To Buy Or Sell An Online Business For Free
    • Everything You Need to Know About Online Selling 
    • Current Business Trends: 9 Things to Keep in Mind
    • How to Open a Coffee Shop Business: A Comprehensive Guide
    • Effective Ways to Start your Business from Scratch 
    • The Main Types And Advantages Of Online Business

    Tips For A Successful Business

    ALL
    • Creative Business Proposal Ideas for Better Sales
    • Easy Digital Marketing Strategies for Small Business
    • Easy Steps to Develop Effective Time Management Skills
    • ClickUp, Trello or Hive?
    • Best SEO Tips for Small Businesses
    • Lessons Every Business Can Learn From Coworking Spaces
    • The Best Digital Marketing Strategies for a Real Estate Business
    • Useful Tips to Make Your E-Commerce Business Successful.
    • Why Do You Need to Track Your Spending
    Menu
    • Creative Business Proposal Ideas for Better Sales
    • Easy Digital Marketing Strategies for Small Business
    • Easy Steps to Develop Effective Time Management Skills
    • ClickUp, Trello or Hive?
    • Best SEO Tips for Small Businesses
    • Lessons Every Business Can Learn From Coworking Spaces
    • The Best Digital Marketing Strategies for a Real Estate Business
    • Useful Tips to Make Your E-Commerce Business Successful.
    • Why Do You Need to Track Your Spending
  • Money

    Invest Money

    ALL
    • Best Safe Investments
    • Investing In Real Estate
    • How To Invest: Are Your Investment Right Your Age
    • Best Alternative Investments
    • Best Investments To Beat Inflation
    • How To Invest In Collectibles
    Menu
    • Best Safe Investments
    • Investing In Real Estate
    • How To Invest: Are Your Investment Right Your Age
    • Best Alternative Investments
    • Best Investments To Beat Inflation
    • How To Invest In Collectibles

    Banking

    ALL
    • Best Savings Account
    • Best High Yield Savings Account
    • Best CD Rates
    • Best Money Market Accounts
    • Best Online Checking Account
    • Best Banking Apps
    Menu
    • Best Savings Account
    • Best High Yield Savings Account
    • Best CD Rates
    • Best Money Market Accounts
    • Best Online Checking Account
    • Best Banking Apps

    Loan

    ALL
    • Best Personal Loan
    • Best Low-Interest Personal Loans
    • Best Personal Loans for Bad Credit
    • Best Personal Loans for Excellent Credit
    • Best Debt Consolidation Loans
    • Best Student Loans
    Menu
    • Best Personal Loan
    • Best Low-Interest Personal Loans
    • Best Personal Loans for Bad Credit
    • Best Personal Loans for Excellent Credit
    • Best Debt Consolidation Loans
    • Best Student Loans

    Insurance

    ALL
    • Sproutt Life Insurance Reviews
    • eHealth Insurance Reviews
    • Cheap Car Insurance Reviews
    • Embrace Pet Insurance Reviews
    • Best Rideshare Insurance Reviews
    Menu
    • Sproutt Life Insurance Reviews
    • eHealth Insurance Reviews
    • Cheap Car Insurance Reviews
    • Embrace Pet Insurance Reviews
    • Best Rideshare Insurance Reviews
  • Forex

    Featured

    ALL
    • Best Forex Trading Courses
    • Best Forex Academy
    • Best Forex Trading Coaches
    • Best Forex Mentors
    Menu
    • Best Forex Trading Courses
    • Best Forex Academy
    • Best Forex Trading Coaches
    • Best Forex Mentors

    Learn To Trade Forex With Dumb Little Man

    ALL
    • Best Forex Brokers Review
    • Best Forex Trading Software
    • How To Trade Forex
    • How to Read Forex Charts
    • Best Forex Indicators
    • Best Forex Screeners
    • Best Time To Trade Forex
    • Best Forex Trading Tools
    • AvaTrade Review
    • CedarFX Review
    • Forex.com Review
    • Interactive Brokers Review
    Menu
    • Best Forex Brokers Review
    • Best Forex Trading Software
    • How To Trade Forex
    • How to Read Forex Charts
    • Best Forex Indicators
    • Best Forex Screeners
    • Best Time To Trade Forex
    • Best Forex Trading Tools
    • AvaTrade Review
    • CedarFX Review
    • Forex.com Review
    • Interactive Brokers Review
  • Stocks & Crypto

    Stocks

    ALL
    • Best Stock Brokers
    • Best Online Brokers for Stocks Under $100
    • Best Online Brokers for ETF Investing
    • Best Brokers for Mutual Funds
    • Best Online Brokers for Bonds
    • Best Blue Chip Stocks
    • Best Swing Trade Stocks
    • Stages of a Stock Market Bubble
    • Best Stock Investing and Trading Podcasts
    • Best Defensive Stocks to Invest
    Menu
    • Best Stock Brokers
    • Best Online Brokers for Stocks Under $100
    • Best Online Brokers for ETF Investing
    • Best Brokers for Mutual Funds
    • Best Online Brokers for Bonds
    • Best Blue Chip Stocks
    • Best Swing Trade Stocks
    • Stages of a Stock Market Bubble
    • Best Stock Investing and Trading Podcasts
    • Best Defensive Stocks to Invest

    Cryptocurrency

    ALL
    • Best Cryptocurrency Trading Courses
    • Best Cryptocurrency Brokers
    • Best Cryptocurrency Exchanges
    • Best Cryptocurrency Apps
    • Learn about Cryptocurrency
    • How To Earn Cryptocurrency
    • How to Trade Cryptocurrency
    • Best Cryptocurrencies
    • Best Crypto Trading Bots
    • Best Crypto Portfolio Trackers
    Menu
    • Best Cryptocurrency Trading Courses
    • Best Cryptocurrency Brokers
    • Best Cryptocurrency Exchanges
    • Best Cryptocurrency Apps
    • Learn about Cryptocurrency
    • How To Earn Cryptocurrency
    • How to Trade Cryptocurrency
    • Best Cryptocurrencies
    • Best Crypto Trading Bots
    • Best Crypto Portfolio Trackers
  • Health

    Health Conditions

    ALL
    • Macular Degeneration
    • Testosterone
    • Constipation
    • Hormonal Imbalance
    • Stomach Bloating
    • Sleeping Problems
    • Baldness
    • Lower Back Pain
    • Toenail Fungus
    • Mouth Sores
    • Eye Dark Circles
    • Stomach Bloating
    • Headaches
    • Face Acne
    Menu
    • Macular Degeneration
    • Testosterone
    • Constipation
    • Hormonal Imbalance
    • Stomach Bloating
    • Sleeping Problems
    • Baldness
    • Lower Back Pain
    • Toenail Fungus
    • Mouth Sores
    • Eye Dark Circles
    • Stomach Bloating
    • Headaches
    • Face Acne

    Product Reviews

    ALL
    • Diet & Weightloss
    • Exercise and Fitness
    • Beauty and Skin
    • Hair and Nails
    • Strength Training
    • Yoga
    • Dietary Supplements
    • Over-40 Supplements
    • Sexual Health
    • Dental Health
    • Men’s Health
    • Women’s Health
    • Sleep and Dreams
    • Best Weight loss Supplements
    • Best Fat Burner Supplements
    • Best Hair Growth Supplements
    • Best Vision Supplements
    • Best Memory Supplements
    • Best Natural Testosterone Supplements
    Menu
    • Diet & Weightloss
    • Exercise and Fitness
    • Beauty and Skin
    • Hair and Nails
    • Strength Training
    • Yoga
    • Dietary Supplements
    • Over-40 Supplements
    • Sexual Health
    • Dental Health
    • Men’s Health
    • Women’s Health
    • Sleep and Dreams
    • Best Weight loss Supplements
    • Best Fat Burner Supplements
    • Best Hair Growth Supplements
    • Best Vision Supplements
    • Best Memory Supplements
    • Best Natural Testosterone Supplements
  • Relationship

    Blogs and Tips

    ALL
    • Females in Relationship
    • Men in Relationship
    • Dating Tips
    • Finding yourself
    • Marriage Tips
    • Love
    Menu
    • Females in Relationship
    • Men in Relationship
    • Dating Tips
    • Finding yourself
    • Marriage Tips
    • Love

    Dating Guides

    ALL
    • Best Catholic Dating Sites and Apps
    • Best Christian Dating Sites
    • Best Pagan Dating Sites and Apps
    • Best Teen Dating Sites and Apps
    • Best Dating Apps for College Students
    • Asian Dating Guide
    • Japanese Dating Guide
    • Filipina Dating Guide
    • Indian Dating Guide
    • Black Dating Guide
    • Russian Dating Guide
    • Best Free Trucker Dating Sites and Apps
    • Best Dating Sites and Apps for Marriage
    • Best Free Crossdresser Dating Sites and Apps
    • Best German Dating Sites
    Menu
    • Best Catholic Dating Sites and Apps
    • Best Christian Dating Sites
    • Best Pagan Dating Sites and Apps
    • Best Teen Dating Sites and Apps
    • Best Dating Apps for College Students
    • Asian Dating Guide
    • Japanese Dating Guide
    • Filipina Dating Guide
    • Indian Dating Guide
    • Black Dating Guide
    • Russian Dating Guide
    • Best Free Trucker Dating Sites and Apps
    • Best Dating Sites and Apps for Marriage
    • Best Free Crossdresser Dating Sites and Apps
    • Best German Dating Sites

Want To Start Trading? Here’s What You Need To Know

By Alana Downer on November 20, 2017 - Fact checked by Dumb Little Man

 Want To Start Trading? Here’s What You Need To Know
Career Money
by Alana Downer November 20, 2017

Have you been toying with the idea of trading as a new profession? You’re in the right place as this article reveals the basics of trading– what it is, how it works and how to make it work for you.

Table of Contents

  • What is trading?
  • Learn how to conduct a fundamental analysis
  • What do fundamental analysts take into account?
  • Why is fundamental analysis so important?
  • Is there a way to predict the stock market?
  • What is stock valuation and how it works?
  • How do you calculate a stock’s fair value?
  • Human decision-making process

What is trading?

Traders actively participate in the financial market by looking for ways to outperform the traditional buy-and-hold investing. Instead of sitting still and waiting for profit, they look for opportunities in the rising and falling market.

They usually work on their own, very often from home. Traders get to set their schedule and achieve unlimited income potential.

It’s relatively easy to enter the field, making it a really desirable profession. However, while it may be easy to start trading, it is challenging to become good at it and succeed.

People who want to become traders for a living often overlook the emotional, financial and time commitments that are required to build a successful trading business. In fact, around 80% of day traders fail within the first two years of their operation. But, if you can come up with good forex trading strategies, you’ll have a chance at becoming a successful profitable trader.

Learn how to conduct a fundamental analysis

stock trading

If you want to become a professional trader, you need to invest time in learning the basics of trading. Fundamental analysis is the central element of investing. There may be many different investment strategies, but the fundamental analysis is important to nearly all of them.

In general, fundamental analysis is a method traders use to evaluate security and to determine the intrinsic value of that security.

At the onset of their analysis, fundamental analysts assume that stock market may not be correct in the way it prices securities. When conducted accurately, fundamental analysis can unveil whether a security is underpriced or overpriced. Traders use that knowledge to make more informed decisions in their daily activities.

Most of the time, fundamental analysis is based on analyzing huge amounts of data points and sources to measure the intrinsic value of security.

What do fundamental analysts take into account?

  • Macro and microeconomic factors
  • Financial statements
  • Figures that are linked to the target security
  • Broader qualitative aspects of the company

Why is fundamental analysis so important?

The central objective of fundamental analysis is to determine the performance and general health of a company or security. Traders can identify strong companies and industries, thanks to fundamental analysis. That’s how they make long bets on strong names and short bets on weak names.

Some of the most critical aspects that are part of a fundamental analysis are closely related to the company in question. Fundamental analysts check whether:

  • The company’s revenue is growing
  • It’s making a profit (you can calculate your profits with a lot size calculator)
  • The company compares favorably with competitors
  • Successfully repays its debts
  • Is involved in questionable financial practices that take place in its management

Investing time in learning fundamental analysis is a smart move because it will provide you with an accurate view of a potential investment’s value.

Once you know which factors you need to include in your consideration, you will be able to capitalize on the best opportunities. There are plenty of online resources that can help you learn the basics of that strategy. So, have a look around and educate yourself before entering trading.

See Also: Top Jobs You Can Get With A Math Degree

Is there a way to predict the stock market?

Sadly, there isn’t. What happens most of the time is the following scenario:

Prices continue to rise but investors are aware that correction can happen and the prices will drop. However, they don’t know when that will happen and what can trigger it. This is why most investors prefer to sit on the sidelines and wait for the right opportunity. There are others who are risk takers and will just jump in.

If you’re one of the traders who prefer to wait, when should you get in? And if you’re already in, how will you know if it’s time to jump in?

These are some of the essential questions traders consider in their daily job.

Now, the answer?

First, you need to understand that specific point where stock prices are fairly valued. Then, you need to gain knowledge about the events that may potentially cause the downturn. Finally, it pays to have an understanding of the entire decision-making processes.

What is stock valuation and how it works?

The price of the stock is dependent on market activity. For example, before deciding to buy or sell, investors compare stock prices. If the stock is being traded at $20 per share and its fair value is $25, it’s a good idea to purchase it. However, if the stock trades at $20 but its fair value is $15, the stock is overvalued and traders should avoid it.

How do you calculate a stock’s fair value?

computing stocks

There are different strategies to help traders come up with that figure. You can utilize the combined value of your company’s assets on its balance sheet and reduce it by its liabilities. Take into account the net value of its future earnings.

These methods will bring you slightly different results which is why it’s not that easy to know whether the stock is fairly valued, overvalued or undervalued.

Human decision-making process

This aspect is arguably the most interesting part. Every individual has emotional and logical components in their decision-making process. While traders can analyze the situation using their logical side, their actions may involve emotions.

When making an investment decision, investors usually process data before making any good bet. However, since it’s hard to know everything, there’s still a good chance for a bad decision to happen. It can occur even to people who have incredible analytical skills.

So, before you start on your journey, make sure to take the basics of trading into account. It will set you on your way to a solid career.

See Also: 5 Ways To Becoming A Rock Solid Investor Today

Like this Article? Subscribe to Our Feed!

Author: Alana Downer

Alana Downer is an experienced blogger whose main interest lie in finances and new technologies. Currently writing for Learn to Trade, Alana might often be found online, sharing her insights into technology trends which shape the way both businesses and individuals function.

  • Web
  • |
  • More Posts(1)

Share This:

  • 0
    Facebook
  • 0
    Twitter
  • 0
    Linkedin
  • 0
    Email
Previous post
Next post

By Alana Downer on November 20, 2017 - Fact checked by Dumb Little Man

FOREX REVIEWS

Get daily tips and tricks for making your best home.
Follow us :
Instagram Pinterest Facebook Twitter
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Get daily tips and tricks from Dumblittleman!
Your subscription could not be saved. Please try again.
Success! You are now a Dumb Little Man! :)
Follow us :
Instagram Pinterest Facebook Twitter
Browse
  • Business
  • Money
  • Relationships
  • Health
  • Happiness
  • Languages
  • Lifehacks
About
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact

Legal

The content on Dumblittleman is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors.
© 2021 Dumb Little Man. All Rights Reserved. Privacy Policy · Terms · Advertiser Disclosure

Health and Wellness


View all

 

 

Health and Wellness

View all
headache pressure points (1)
Health

5 Effective Headache Pressure Points: Complete Guide 2023

by Vanessa Richards January 17, 2023
lower right abdominal pain
Health

8 Common Causes Of Lower Right Abdominal Pain:

by Vanessa Richards January 17, 2023
how to heal your gut
Gut Health

How to Heal Your Gut In 9 Easy

by Vanessa Richards January 17, 2023
Types of Magnesium
Dietary Supplements

11 Types of Magnesium You Need To Know:

by Vanessa Richards January 17, 2023
Gum Abscess
Dental Health

7 Gum Abscess Symptoms To Look Out For:

by Vanessa Richards January 12, 2023
gerd diet plan
Diet & Weightloss

7 Day Gerd Diet Plan For Long-Term Relief:

by Vanessa Richards January 12, 2023
high protein low carb
Diet & Weightloss

15 Foods To Eat On A High Protein

by Vanessa Richards January 11, 2023
right upper quadrant pain
Health

7 Common Causes Of Right Upper Quadrant Pain:

by Vanessa Richards January 11, 2023
Diet & Weightloss

9 Ways On How To Get Rid of

by Vanessa Richards January 10, 2023
Dental Health

How to Get Rid of Gingivitis: 15 Home

by Vanessa Richards January 10, 2023
inner knee pain
Bone and Posture

11 Causes of Inner (Medial) Knee Pain: Complete

by Vanessa Richards January 9, 2023
healthy smoothie recipes
Diet & Weightloss

8 Healthy Smoothie Recipes to Energize your Mornings:

by Vanessa Richards January 6, 2023
Weight Loss Tips for Women (1)
Diet & Weightloss

25 Weight Loss Tips for Women (That Actually

by Vanessa Richards January 6, 2023
what causes joint pain
Bone and Posture

What Causes Joint Pain and How To Get

by Vanessa Richards January 5, 2023
Why is My Period Late
Health

Why Is My Period Late? 9 Most Common

by Vanessa Richards January 5, 2023
Tricks to lower blood pressure instantly
Blood Pressure Level

21 Effective Tricks To Lower Blood Pressure Instantly

by Vanessa Richards January 5, 2023
how to last longer in bed
Health

12 Ways On How to Last Longer In

by Vanessa Richards January 5, 2023
how to lose face fat
Diet & Weightloss

10 Ways On How to Lose Face Fat:

by Vanessa Richards January 5, 2023
Carb Cycling
Diet & Weightloss

Carb Cycling For Beginners: Complete Guide 2023

by Vanessa Richards January 5, 2023
Best Turmeric Supplements
Best of

13 Best Turmeric Supplements of 2023 According To

by Vanessa Richards January 5, 2023
Facebook Twitter Instagram Linkedin

Investing

Stocks

Best Stock Brokers Review

Best Online Brokers for Stocks Under $100

Best Online Brokers for ETF Investing

Best Brokers for Mutual Funds

Best Online Brokers for Bonds

Stocks Blogs: Complete Guides

Forex

Best Forex Trading Course

Best Forex Brokers Review

Best Forex Trading Software

Best Forex Indicators

Best Forex Screeners

Forex Blogs: Complete Guides

Crypto

Best Cryptocurrency Brokers 

Best Cryptocurrency Exchange

Best Cryptocurrency Apps

Best Cryptocurrency Trading Course

Best Cryptocurrencies

Crypto Blogs: Complete Guides

Futures

Best Futures Brokers

How to Trade Futures

Best Futures Trading Software

Best Futures Trading Strategies

Best Futures Brokers

Options

Best Options Trading Course

Best Options Trading Strategy

Best Options Online Brokers

Best Options to Buy

Best Binary Options Brokers

Health

Best Supplements

Best Weight Loss Supplements

Best Fat-Burning Supplements

Best Hair Supplements

Best Vision Supplements

Best Memory Supplements

Best Natural Testosterone Boosters

Best Joint-Pain Relief Supplements

Supplement Reviews

Divine Locks Reviews

Keravita Pro Reviews

LeanBiome Reviews

Juvenon Bloodflow-7 Reviews

RockHard Formula Reviews

ProstaStream Reviews

NitriLean Reviews

Hyperbolic Stretching Review

Dentitox Pro Reviews

Revision Reviews

Relationships

Religious Dating Guides

Best Catholic Dating Sites and Apps 

Best Christian Dating Sites

Best Pagan Dating Sites and Apps

Ethnic Dating Guides

Asian Dating

Japanese Dating

Filipina Dating

Indian Dating

Black Dating

Russian Dating

Other Dating Guide

Best Free Trucker Dating Sites and Apps 

Best Dating Sites and Apps for Marriage

Best Free Crossdresser Dating Sites and Apps

Best Teen Dating Sites and Apps

Best German Dating Sites

Best Tall People Dating Sites and Apps

Money

Banking

Best Savings Account

Best High Yield Savings Account

Best CD Rates 

Best Money Market Accounts

Best Online Checking Accounts

Best Banking Apps

Loans

Best Personal Loan

Best Low-Interest Personal Loans

Best Personal Loans for Bad Credit

Best Personal Loans for Excellent Credit

Best Debt Consolidation Loans

Best Student Loans

Credit Cards

Best Buy Credit Card

First Credit Card Guide

How to Get Out of Credit Card Debt Fast

Best Chase Credit Cards

Indigo Platinum Mastercard Review

Insurance 

Sproutt Life Insurance Reviews

eHealth Insurance Reviews

Cheap Car Insurance Reviews

Embrace Pet Insurance Reviews

Best Rideshare Insurance Reviews

Follow us 
Facebook Twitter Instagram Linkedin
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact

The content on Dumblittleman is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors.

© 2023 Dumb Little Man. All Rights Reserved. Privacy Policy · Terms · Advertiser Disclosure

You’re our first priority. Every time.

ECG Pte Ltd (www.dumblittleman.com) is an independent publisher and comparison service, not an investment or financial advisor. Its articles, interactive tools, and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment or financial advice. Dumblittleman does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment or financial issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/