Notes for Beginning Investors - Overview

All systems of belief - religion, mathematics, investing, etc. - come down to a few axioms that must be accepted on faith. For example, in mathematics, you have to accept the axiom that you cannot divide a number by zero. If you do not accept this axiom, the entire structure of mathematics collapses. In investing, there are three main theories: Random Walk, Fundamental, and Technical. We will explore these theories and see the ideas and axioms that are behind each technique. While this section speaks only of stocks, keep in mind that the theories hold true for commodities, bonds, etc.