By trading or investing on stock market, we all anticipate making our money work harder for us.  When I first start digging about equities or stock market business, I didn’t really know much. Perhaps, until today, I still consider myself as a newbie. Since financial education is a long life span process and market itself is like a chameleon that keep changing it trends and we must adopt with it by keeping us informed and educated.

On the long run, it made me realized the making money to work for us is not that easy on reality. You need not only to educate yourself but sometimes you must to suffer losses before you'll learn the lessons. And as they always says, our own emotions are the one killing our portfolios, this happens if you made a decisions without sufficient knowledge and skills.

Technical analysis is a manner of speculating the market directions. Their methods and tools are quite confusing to others, specifically for beginners.  The primary tools to study and assumes the next stock price movements base majority on charts of previous performance, events and trading actions. Technical traders commonly consider that the market trends are their friend and to ride with it, emotional responses to the stock price movements lead to recognizable chart pattern. This group, trades their shares in short term basis of holdings.

Fundamental analysis involves it company’s financial health and stability, management composition, market advantage against it competitors. Fundamental investors a commonly buys shares of the company as for long-term investment that based on its fundamental and valuation.

For a newbie on stock market, it’s very important to know and evaluate first yourself. Both technical and fundamental approach are on same goal, but you need to pick a tools that fit also to your time and risk tolerance. A strategy only became dangerous if it applies without proper planning and knowledge that cause you to have a reckless decisions that results heavy losses. The key for better success is to have a proper knowledge and platforms that works for you, realizing your limitations while capitalizing also your strength.

For fun, see the below cartoon and caption to know more the two stock market buyers.