| "body"> | | | | Buying a share of stock can be as easy as calling a |
| Understanding how the economy works isn't the only | | | | broker and saying that you want to buy such and |
| fundamental analysis tools that are important while | | | | such a stock, but you can place an order in a number |
| trading stocks. You also need to read financial | | | | of other ways that give you better protections. Most |
| statements to understand the financial status of the | | | | orders are placed as day orders, but you can choose |
| companies you want to buy. A Company's income | | | | to place them as good till cancelled orders. The four |
| statements on the other hand give you a look at the | | | | basic type of orders you can place are market |
| results of the most recent period and provide a basis | | | | orders, limit orders, stop orders and stop-limit orders. |
| for comparison with prior years and periods. You can | | | | Understanding the language and using it to protect |
| use these statements to look at whether revenues | | | | your assets and the way you trade is critical to your |
| are growing, and if they are by what percentage. | | | | success as a trader. It is necessary to know the |
| You also can see how much profit the company is | | | | nuances of placing orders so you don't make a |
| keeping from the revenue it generates. | | | | potentially costly mistake by placing a market order |
| The cash flow statement shows you how efficiently | | | | when you intended to place a limit order. Putting a |
| a company is using its cash and whether it's having | | | | stop-limit order in place may sound like the safest |
| problems meeting its current obligations. The balance | | | | way to go; however, doing so may not help you in a |
| sheet gives you a snapshot of a company's assets | | | | rapidly changing market. |
| and liabilities and stockholders equity. | | | | |