Sunday, December 22, 2013

What Are Stocks & Technical Stock Analysis?

Plain and simple, stock is a share in the ownership of a company. Whether you say sharesequity, securities or stock, it all means the same thing.  The Holding a company's stock means that you are one of the many owners (shareholders) of a company. A stock is represented by a stock certificate. In today's computer age, you won't actually get to see this document because your brokerage keeps these records electronically in your demat account. This is done to make the shares easier to trade. The importance of stock ownership is your claim on assets and earnings. Without this, the stock wouldn't be worth the paper it's printed on. But almost the traders today buy it for appreciation of values in market.

How would you know the value will be appreciated or depreciated?  There are two things you can predict, Fundamental Analysis and Technical Analysis.

I don’t talk much about fundamental analysis here. As a common trader and poor knowledge about fundamentals, we can’t predict price movement based on published financials. But we can quickly learn the Technical Analysis and can apply that in our day to day trading.

Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. So technical analysis looks at the price movement of a security and uses this data to predict its future price movements. Using technical analysis you can predict small, medium and large price movement.

Every technical analyst has its own methods to analysis. There are thousands of indicators to analyze but practically it’s impossible to apply all one together. We should stick with specific indicators in day to day trading.

YouTrader provides following technical indicators

Pivot, MACD, Moving Averages, Exponential Moving Averages, RSI, Slow Stochastic Oscillator

These are all available in interval of 2MIN, 5MIN, 30MIN, Daily and Weekly.

I will post all the details about these indicators and how those are applied in YouTrader in coming blogs.

Happy Reading….

2 comments:

paceresearchindia said...

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sandeep capitalstars said...

thanks for sharing such informative news
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