The basic principles of the stock market: how it works and its mechanisms

Every year, a large number of people enter the stock market in order to gain returns. Maybe a group of people invest their capital in the stock market based on what they hear and hear, but they are not familiar with the mechanism of investing in the stock market. For this reason, they may face losses in the market and leave the stock market in despair after a short period of time. Knowing the stock market helps people who intend to work in this field to have a more successful investment experience. One of the best ways to get familiar with all kinds of investment strategies in the stock market and other financial markets is to participate in stock market training courses. Time is one of the most important influencing factors in the stock market. It is better to invest in the stock market in a long-term time horizon. Usually, companies and reputable financial institutions of the capital market hold training courses related to the stock market in person and online. It is possible to invest in the stock market without having specialized knowledge and sufficient experience through investment funds. Funds are an indirect way of investing in the stock market, and are managed by experienced professionals. Funds have created a high diversity for investors and people can make a suitable investment by creating an asset portfolio from the combination of all types of equity, mixed, sector, commodity, etc. funds.

Start training in the stock market

The path of education in the stock market can be different for each person. The oldest strategy for choosing a stock to buy is to review and analyze the trading board of that stock. The trading board provides investors with comprehensive information about the stock status of a company. This information includes price, transaction volume, transaction value, market value, number of buyers, number of sellers, etc. Table reading is a suitable strategy to evaluate the current conditions of a share from the point of view of buyers and sellers of a share. One of the most important factors in table reading is identifying the entry and exit of smart money in that company. Board reading courses are held at different levels. To begin with, it is better to participate in its introductory courses, then by learning courses such as filter writing and technical analysis, take part in advanced levels of table reading.

Along with courses such as table reading, technical analysis training can also be suitable for success in the stock market. Technical analysis makes it possible to evaluate a company based on the trend of its price chart available to analysts and enthusiasts. Financial market activists believe that all the information of a company is included in its price. Therefore, the price trend of an asset such as stocks, gold, currency and investment fund gives analysts and financial market activists the opportunity to predict the future trend of an asset or market based on what happened in the past. Also, in technical analysis, using indicators such as relative strength index (RSI), moving averages, Fibonacci ratios, etc. make it easier to predict buying and selling points.

Professional training path

Courses such as table reading and technical analysis make investing in the stock market easier. However, in order to know more about the stocks of companies in the stock market, more detailed analysis is needed. Companies on the stock exchange publish monthly reports on the sale of products and services on a site called Kodal. Also, companies publish their financial statements quarterly and allow analysts to check the profitability of a company. Fundamental analysis is a suitable training course for people who intend to conduct a comprehensive and complete review of a company. In fact, fundamental analysis is the strategy of professional investors in the stock market. Financial market analysts and activists usually use tools such as technical analysis and chart reading for short and medium term investments. If using fundamental analysis, it is possible to check the relative profitability of a company in a long-term time horizon. Therefore, fundamental analysis is suitable for people who intend to invest in the stock market for the long term.

Appropriate educational resources

There are different methods and sources for teaching courses related to the stock market. Some large and reputable financial institutions provide the possibility of training courses related to investment and stock market in various types. One of the best resources for free education is the stock exchange site. On this site, various online training classes related to the stock market are held daily by experienced professors. People who do not have time to participate in online classes can also view recorded video courses available on the site. Also, on this site, there are various and many articles about stock market education.