Stock Market Explained

Book excerpt: Why This Book... This book explains in clear and understandable language how anyone can benefit from learning about trading and investing in the stock market. All of the necessary basics are set forth, including the differences between trading and investing. A veteran trader, Andrew Aziz, shares some of his own proven day trading strategies and discusses key "to dos" and "not to dos" every new day trader must know before putting their hard-earned money at risk. Two chapters of the book are dedicated to the art and science of swing trading. Effective swing trading strategies are outlined, and all are amply illustrated with examples from real trades. The final section of the book is devoted to investing in the market. You will learn not only how to read a company's financial statements and select winning stocks, but also how to construct a well-balanced investment portfolio. Given that the author and his guest contributor have quite different backgrounds in finance, a unique opportunity is created for the reader to capture a very broad picture of the true potential of trading and investing in the stock market. In summary, you will learn the following key concepts by reading this book: What are stocks? What are exchanges, indices and ETFs. How to pick the right brokerage account. How to read price action and candle stick charts. How to day trade: opening range break down, ABCD pattern How to swing trade: Cup and Handle, Head and Shoulders pattern How to pick stocks based on P/E multiple and key fundamental ratios What to look for in income statements, balance sheets, and cash flow statements of different companies How to construct a well-diversified portfolio