If you are a beginner or even if you are a seasoned stock trader, stock trading forums can be beneficial for learning from the experience of other traders. There is a lot of critical thinking and financial advice taking place in these forums. Topics discussed in stock trading forums include fundamental and technical analysis, the financial markets and stock types.
Fundamental Analysis of the Stock Market
The financial health of various companies is analyzed according to the advantage over competitors, financial statements and the markets. Predictions are made based on the fundamentals of each company’s information.
Technical Analysis of the Stock Market
This is done with the belief that nothing is random. Technical analysis is based on numbers that include price patterns involved in the value of stocks over a period of time.
Markets can be broken down to two basic areas: the stock market and promissary note market. The discussion of financial markets is tied up in asset pricing, the reduction of expenses while trading and liquidation guarantees.
Different Types of Stock on the Market
These include blue chip stocks, growth stocks and stocks based on income.
Income stocks are those that have stable earnings and have good pay-offs in dividends to their shareholders. These kinds of stocks are held by mutual funds.
Blue chip stocks are stocks purchased in companies like Nike or Microsoft. The history must be one that has steady growth in profits and returns over four billion dollars within a year. They must have a good history of paying off in dividends.
Growth stocks grow faster than shares in most companies. The company’s management pursues revenue reinvestment for research and development and capitalizes on the assets of the company. They do not often pay off in dividends.
Some of the most popular online stock trading forums are:
Some of the forums on this site are: Option Plays, Stock Picks and Strategies, “Mad Money with Jim Cramer” discussions, and a trading simulator.
Zecco.com – Free Stock Trading & Investment Community
Elite Trader – Reportedly the #1 forum for stock traders on the internet
Trading Talk: Active Trader’s Discussion Forum
This site includes several different forums. Some are: Day Trading Stocks, Forex Discussion, Swing Trading, Wall Street News and a forum created specifically for beginners.