The main problem of the beginner investor is how to getting started. Everyone wants to make money quickly and don’t have time … So first – do have some patience and as with any other job or profession you must start from scratch.

In this article we shall examine what is the best way for the investor to start. The key word for a safe investment is – knowledge (as the common phrase – knowledge is power).

The stock market is not a casino nor it is a very forgiving place and it takes a heavy toll on ignorance and lack of knowledge. So before one starts to invest he needs to learn and study as without it he no chance to earn over time. One way to get this education is through some orderly training via courses. There are many courses, for the basic students as well as for the advanced which are offered by many education institutes. Anyone who thinks this is his way of learning should receive recommendations from friends, or graduate courses.

Another way to get the desired level of knowledge is by the Internet. The Internet is flooded with material in almost every area and certainly the stock market. Preferably whoever intends to take the course, can acquire a basic background to know what he wanted and if it suits him. There are two main channels to guide you in the investment world and help you take decisions:

1. Fundamental analysis

2. Technical analysis

Fundamental analysis is an analysis of the firm financial reports and deducing conclusions about it s value, its potential and the comparison to the existing share price. There are very few fundamental analysis forums, both because of the high level of knowledge required and because of the hard work involved in the process. The investor who wants to study and gain expertise in this area, should purchase professional books dealing with the subject and learn through them. This study based on two main areas:

1. Analysis of financial reports.

2. Valuation of companies.

Technical analysis is taking decisions on a specific stock, based on past performance of the stock. The stock price can be found over the web in multiple sites, where it is presented as graphs. More advanced analysis requires more advanced software (which usually is not free). the investor can gain a lot of knowledge from reading post in forums and learn about the different terms and graph shapes, to understand the existing momentum in trade and acquire experience and knowledge bases.

This is the end of part 1  - in the next part we shall discuss virtual portfolio investment and the proper tools to take. See you then!