BrokersMinutes

Investing Basics

Mastering stock market basics for successful investing is simple, but it's not easy.
One of the big myths of the last bull market since 2003 was that the stock market was essentially a savings account that returned 15 percent per year-at the least. Unfortunately, as many investors discovered when the bubble popped in 2008, things that look too good to be true usually are.

Management Effectiveness:

Return on Assets (ROA)
Return on Invested Capital (ROIC)
Return on Equity (ROE)

Valuation :

Discounted Cash Flow (DCF)
Free Cash Flow (FCF)
Intrinsic value

Picking individual stocks requires hard work, discipline, and an investment of time. Expecting to make a large amount of money with only a little effort is like expecting to shoot a great round of golf the first time you pick up a set of clubs. There's no magic formula, and there's no guarantee of success.
That's the bad news. The good news is that the basic principles of successful stock picking aren't difficult to understand, and the tools for finding great stocks are available to everyone at a very low cost - you dont need expensive software or high-priced advice to do well in stock market. All you need is patience, an understanding of accounting and competitive strategy, and a healthy dose of skepticism.
How can you equip yourself to make investment decisions yourself? Is it possible to cut short the learning curve in mastering stock market basics?
Why not make a start, by checking out the links on this page

Financial Strength:

Quick Ratio
Debt to Equity (D/E)
Interest Coverage
Current Ratio

Valuation Ratios:

Price to Earnings (P/E)
Price to Sales (P/S)
Price to Book (P/B)