Stock Analysis:
The most important thing when you start trading is knowing how to analyse the stocks. Many people or the people new to the trading world, often make decisions base on others assumptions. Some people are also dependent solely on broker tip without having any clue of the stocks. These things affects the beginners, ending up making losses.
So we will go through some simple techniques of analysis which will guide you in selecting your stocks.
Stock Analysis Techniques :
- Making Favourite List : This should be your primary move while you start your analysis. Here you have list few stocks say 10 stocks, and observe these stock carefully. To get best idea of your specified stocks you should refer the stock history of at least 2 years so that you get some clear picture of the stock. The history of the stock will show you when the stock have performed and also what factors have affected the stock. Thus this method will help you to predict the movement of the stocks.
- Broker Advice : When you start trading you should keep in touch with your broker for regular updates. The brokers serve as the best source of updates in the markets. The help you in selecting your stock, but you should not forget to analyse the respective information on your own before making any decision.
- Online Sources : Now a day internet has become the best resource for getting almost any kind of information. There are number of stock market sites which show continuous informations related to stocks and they are free. These sites also provide polling which help us to know the market trend and also public trend. People also post their reviews regarding the market or individual stocks which proves useful for our analysis.
- Having group of like minds: Having group of like minds means to make a group of people of same interest in order to have discussion. If you know people who are interested in trading stocks will prove very helpful as we all keep learning something new from each other. Thus it will help to enhance our knowledge and also obtaining new ideas.
These are the basic techniques of analysis where you can learn to analyse on your own.
