THE FUNDAMENTALS OF STOCK INVESTMENTS
Stock as an investment tool can be seen from all sides. Stocks are traded daily in the daily market, so the market depends on the mood of the market. A real stock company is a property sign, can be seen as an item. Every day we allow a wide range of trades to profit by selling and selling at the right time. If we look at it, we offer ourselves as traders. There is no doubt that many traders benefit from this way.
But if we want to be a cleaner and want to see the stock as a business property, then before starting investing in stocks, we should know how the company's business is in progress. If we can benefit from trading, why should we disrupt basic stock analysis? However, looking at the charts, we can also benefit. One thing to keep in mind, in the short term, the market is a voting machine, while long term, the market is a weighing machine. What does it mean?
Soon, the psychological condition of market participants will change frequently. News and information about the upcoming day will impress the traders' sentiments and impress their idea of a possible stock. Experts will be able to take advantage of the psychological condition of market participants and generate profits. Because in a short time, stock prices vary according to the trader's behavior. Therefore, in a short time, a voting machine is called.
What happens in the long run? Due to a very unstable stock, in the end, it will create the difference between the company's stock and the stock trading value done behind this company. As a result, the shares will go bankrupt according to company performance. So for a long time, the market weight machine is called.
If our fundamental investment base in stock is to analyze the business behind it, then we have to do a basic analysis. The basic analysis itself is very broad. A business must be influenced by compulsory external conditions (economic conditions, level of competition, government regulations, and industrial measures where the company is located).
However, a well-organized company will be able to offer changes in external conditions. The company's approach is to deal with the various weather conditions they apply. How do we know about it? A reliable source is their annual report. In the annual report, the management company will report its performance, face the challenge, the strategy to improve its business, and it may be financially. In short, we can begin to understand business by reading the annual report.
Therefore, I call corporate analysis as the core of basic analysis. The basic external conditions will always change, but the company's ability to offer them is more important.
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