Stock Market Research is important part of making a trading decision. The same as market analysis is divided into fundamental analysis and technical analysis, the market research could be applied to the fundamental data and technical quotes.

Research could be classified as a first and the most important step that is taken in an analysis (whether it is fundamental analysis or technical analysis). Based on the research results a trader (analyst) defines method of trading and may build a trading system (strategy). In similar to the technical analysis way, the purpose of the stock market research is to define method, algorithm, system or strategy which would allow to select what to trade and which would allow to predict with certain degree of accuracy a possible future trend development of selected for trading commodity.

In most cases when investors (traders) refer to the market research they assume a research for stocks that could be used for trading and investing. Other type of market research, that has become very popular over the last couple of years, is research of technical indicators that could be applied to a security (stock, index and other commodity) with the purpose of building a trading system.

Big investing companies are spending millions on the stock market research and several years ago, deep and informative stock market research was available to big institutional traders only. Yet, nowadays, internet technology provides the way for simple ordinary traders to the information that previously was available to big traders only. Now, a trader cannot say that he or she cannot make an informative decision because of the lack of information.

When it comes to the stock market research, we may give following recommendations that could be useful to any retail trader (investor):

• First of all you have to get basic knowledge about stock market, trading, stock exchanges, indexes, exchange traded funds, options, futures, etc. Some new traders start to trade by wrongly assuming that they know everything what they need about trading and in some cases their knowledge are based on what they saw in news on TV. Learn an find out what moves the price... The more you learn, the more chances that you will become a profitable trader.
• After you get the basic knowledge about stock market and forces that move price, it is recommended to define your expectations and target. You have to know what type of trader you are and what you are going to trade.
• When you know who you are (from the trader's prospective) and when you know what you are going to do (what to trade), you may start your research:
  • you  learn more deep about subject of your trading;
  • you collect all needed information: price and volume quotes, if you trade stocks then fundamental data, if you trade indexes then advance/decline quotes, etc;
  • you analyze all available information and define trading strategy;
  • you test your strategy, adjust and test again until you fill confident that you may put your money on it.

Bear in mind that the stock market trading is not a simple hobby. It is difficult job. If it would be easy, everyone would be a winner. Yet, people lose money on the market. The more hard work you put in the beginning, the more chances you will have to become a professional trader.

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