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Wednesday, 19 August 2015

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Want to Trade Effectively in Stock Market?

Trading in Stock Market is an art and it takes a long time to master this art and trade profitably in the stock or commodity market. The stock market trading can be done by using one of the below mentioned strategies:

1) Technical Analysis.
2) Fundamental Analysis.
3) Trading Based on News.
4) Index Method based Trading.
5) Stock Market Tips based Trading.

Technical Analysis: In technical analysis the technical or the price movements of the commodities or the stock is analyzed. The previous or past price movements are taken as a basis for anticipation of future price movements. In technical analysis various index or indicators like weighted average and moving averages are calculated and plotted. For example one can plot 7 days moving averages and 14 days moving averages. When these graphs cross each other it gives a buy or a sell signals. Technical analysis is a whole in depth branch and to be experts in this field require a lot of effort and time. 

Fundamental Analysis: In fundamental analysis the financial fundamentals of the studied to determine the suitability of the company for the investment. The profits incurred and the financial data shared by the company forms a basis of the investment.

Trading Based on News:  The national and international news have a very strong impact on the price movements or the price fluctuations. Thus the latest news can be made as a basis for trading profitably and effectively.

Index Method Based Trading: The index based method is related to the diversification of the portfolio of trader. The trader can invest in different sectors so that there is a mix of movement in case of downfall of a particular sector. This method has been found effective in making moderate profits.

Stock Market Tips Based Trading: In all the method listed above, there should be a detailed knowledge of the tactics involved and knowledge should be of expert level to trade effectively and profitably. For a newbie who is new to the stock market or commodity market  and don’t have much experience, they can rely on the advice of the stock market advisory firms which give advice based on the analysis by the above listed methods. These advisory firms have expert technical analysts and fundamental analysts who do in-depth analysis and give accurate stock market tips.

Thus above are the methods or strategies to trade effectively in the stock or the commodity markets.

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