Tips for Success in Stock Trading

November 4, 2009 by  
Filed under Financial Tips, Stock Trading

How to win in stock market? That is the question that arises every wise investor who does not consider the stock market like a lottery but as a way to make money grow.

For this, big speaking, say that there are two techniques that correspond both to a particular form of market analysis and especially the development of listed companies.

The first, called “fundamental analysis” search to find out what are called fundamentals of listed companies. The basic figures are the capital of the company, income statements, all ratios equity / debt, net income / sales, capital / total number of shares outstanding in the market, etc.., So what ‘we can call the financial analysis.

The second, called “graphical analysis, although commonly called technical analysis while relying mainly on the study of representations of evolution, seeking to know what will happen to stock prices based on histories of these courses.

Today, given the rapidly changing global markets, the graphical analysis is accepted as effective for analyzing the short and medium term, fundamental analysis for long and very long term.

It is an effective technique: it predicts a maximum chance of upward or downward trend of an index, action, etc..

It is the only possibility for investing in “swing trading”, that is to say who bought a title one day to sell it a few days later or, more reason for an investor in “day trading”, then an investor who buys a share and sold the same day.

It is also the only reliable possibility to invest in VAD (selling), this practice is to sell first action to buy it then, which saves money in a bear market. It’s risky, absolutely not recommended for beginners, but it pays when it’s done!

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