Investment Methodology and Risk Management Online Lessons

Stocks Investing Methodology

Understanding and choose what investment methodology to used before you start your stock market investment is crucial to your success in the long run. The secret of successful stock market investment is start with analyze stock market cycle and have a "big picture" in mind when you are in stock market.

There are various stock market investment methodology and the most famous and gain more popularity are fundamental analysis, technical analysis and value investing. Chart patterns analysis and technical indicators both are the topic under technical analysis.

• Stock Market Analysis

• Efficient Market Theory

• Stock Fundamental Analysis

• Stock Technical Analysis

• Value Investing

• Chart patterns analysis

• Leading and Lagging Technical indicators

Risk Management

Understanding what type of risk you are facing when come to stock market investment before you can know how to manage the risk. When come to diversify, how many stocks you need to own in your investment portfolio in order to minimize the risk? Asset Allocation is one of the most important step in your risk management plan. Market risk premium or patience premium explain why you need to hold on to the stock for long term in order to earn higher return provided by bond.

• Risk management

• Financial Planning before Stock Investing

• Asset Allocation and Risk Management

• Market Risk Premium

Develop a investment plan (for investor) or trading system (for trader) base on stock investing strategies or methodologies that is best fit for your personal risk profile (conservative, aggressive, risk taker etc...) will enable you to have confidence to enter and exit stock market with razor-like precision.

Test your trading system before risk your money. After you develop your own trading system, pick a stock you what to trade with the price you want to buy or sell and paper trade with your trading system using daily data. Stick to to stop loss level, if the stock price move up, move up your stop up or trailing stop to protect your profit and if the stock price move against you, hold on to the stock until you get stopped out. Keep this practice for few months to get a good feel of your trading system and indicators to see how well it work and build up your confident to the trading system and indicators.