I think we all must have listen the name of warren buffett. He is an american stock market investor, owner of Berkshire Hathaway and obviously a billionaire(Net worth of over 84 billion dollars). He stared investing in stock market when he was 13.  His massive wealth is a result of long term investing in financial market with good discipline. Warren buffett’s company  has given an annual return of more than 18%  to his shareholders consistently. 

 Not only warren buffett has made such a huge wealth by investing in stock market. There are many other names like Charlie Munger(business partner of warren buffett),Benjamin Graham(guru of warren buffett), Peter lynch ( Fund manager of Magellan who gave return of more than 29% to his investor for 15 years in a row), Gorge Soros (The man who made one billion dollar in a day ). Rakesh Jhunjhunwala (Also known as warren buffett of india), Monish Pabrai( An indian american value investor) any many many many more.

By following some of  the basic steps listed below  you can also choose your path in stock 

STEP 1. START WITH BASICS 

STEP 2. CHOOSE YOUR PATH

a. Fundamental Analysis

                                 

Fundamental analysis (FA) is a method of measuring a security’s intrinsic value by examining related economic and financial factors. Fundamental analysts study anything that can affect the security’s value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company’s management.The end goal is to arrive at a number that an investor can compare with a security’s current price in order to see whether the security is undervalued or overvalued.

b. Technical Analysis 

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.Unlike fundamental analysis, which attempts to evaluate a security’s value based on business results such as sales and earnings, technical analysis focuses on the study of price and volume. Technical analysis tools are used to scrutinize the ways supply and demand for a security will affect changes in price, volume and implied volatility. Technical analysis is often used to generate short-term trading signals from various charting tools, but can also help improve the evaluation of a security’s strength or weakness relative to the broader market or one of its sectors. This information helps analysts improve there overall valuation estimate.

Technical analysis can be used on any security with historical trading data. This includes stocks, futures, commodities, fixed-income, currencies, and other securities. In this tutorial, we’ll usually analyze stocks in our examples, but keep in mind that these concepts can be applied to any type of security. In fact, technical analysis is far more prevalent in commodities and forex markets where traders focus on short-term price movements.