The Bull Hunters Guide

Hello Fellow Bullhunters

What I would like to give you today is a brief overview of the different types of analysis you can use to help you in selecting shares. The methods most commonly used to select shares to invest in are:

1. Fundamental Analysis is when we use the history of a company, combined with their financial status and the management of the company as a whole. Basically, what we hear on the news and read in the papers gives us this information.

2. Technical Analysis is charting the stocks and backtesting historical data to look for various patterns that the stock might be producing. By using this method, we see that history has a way of repeating itself. Especially in the blue chip stocks.

3. A combination of both.

These methods are widely used. In fact, Warren Buffet, the second richest man on the planet uses just fundamental analysis. He has been doing this for many, many years.

Personally, I like to use technical analysis. Reading charts is a simple method of learning about a stock. The more practice you do, the better you get at it.

Bullhunters, I learnt how to chart stocks by hand when I was first interested in trading the stock market. Drawing candlestick charts took plenty of discipline, but it was well worth it for me. It has given me a background in understanding charts.

The software available today makes it unnecessary to chart stocks by hand as you have it all at the click of a button now. There is a vast array of charts available to you on the internet as well. You can have a look at bigcharts.com, marketwatch.com and finance.yahoo.com.

I would like to recommend for those of you who are here to learn about trading that you start to look at some charts to get an idea of some of the trends that certain stocks have.

Has this article helped you?

Are you getting what you need from this blog? Let me know how I can best help you to learn about the US Stock Market.

I have just returned from Barbados… I enjoyed a little R & R, and got in with the locals and all that Calypso music. Unfortunately, there wasn’t any cricket in town while I was there… they certainly love their cricket… there are signs up everywhere you go about how much they love their cricket. Everybody should get there at least once… it really is a nice place to visit.

Angela Recchia
Graduate Support
Universal Wealth Creation © 2004 - 2007

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This entry was posted on Tuesday, April 10th, 2007 at 4:28 pm and is filed under Fundamental Analysis, Select Shares, Stock Market, Technical Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.