Monday, 7 September 2015

Learn How to Trade in The Stock Market

Learn How to Trade in The Stock Market - Money Classic Blog
Trading in Stock Market is an easy business and is immensely profitable when done with proper guidance. Trading in the stock market can be done with the help of advice of some advisory firm. The advisory firms provide accurate stock market tips and commodity market tips to trade profitably. They provide buy and sell signals with proper stop loss. Based on the analysis performed by the analysts in the advisory firm they give buy and sell signals to their clients. If they anticipate a rise in the price of particular stock or commodity they generate a buy call. On the other hand if they anticipate a fall in price of stock or commodity they generate a sell call.

The analysts in the advisory firms use technical analysis to determine the trend and to anticipate the price movements. The technical analysis is a whole in depth field which involves dozens of indicators. It involves indicators like moving averages, exponential moving averages as well as MACD and RSI. The different indicators represent different aspects of the price movements.

For example the moving averages represent the averages of the latest period of which the moving average is calculated. For example a five day moving average represents the average of latest five price levels. Similarly an N period moving average represents average of latest N price levels. The Moving averages are important indicator in determining the general trend of the movement of the price levels. Similarly the exponential moving averages are the moving averages having exponential growing weights multiplied with the latest price levels. Thus exponential moving averages are a better approach than moving averages to determine the general trends of the movements. The general strategy is to draw two different moving averages with different periods and then take the position when one moving average crosses the other. The cross over represents the reversal of trends.

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