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Tuesday, 3 November 2015

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Stock Market Challenge for the Newbie Investors

Stock Market Challenge for the Newbie Investors
Many newbie traders and investors approach the stock market for gaining good profits and multiply their wealth. It is seen that the newbie traders don’t want to lose their investments as they are new and the losing will lead to drop in the confidence of the traders. For example, if the trader starts with a trading amount of 10000 Rs and he come to lose the total amount, will lead to break the confidence of the trader. This trader will never return to the stock market again.

The trading in the stock market is always accompanied with risks. Thus the trader should start with an investment amount which he can afford to lose. There are equal probabilities of loosing and gaining in the stock market. Thus if the trader is following a good strategy, it will lead to increase in the chances of the winning trades.

The important part for the newbie trader is to gain sufficient knowledge about the market. The trader should learn about the fundamental analysis and technical analysis. In fundamental analysis the fundamentals of the value of the company is identified using various indicators and Ratios. The P/E ratio is one of the common ratios used in the fundamental analysis. The fundamental of the company will determine whether the company is worth investing and will give the positive returns in the future. The fundamental analysis is mostly used for the long term trading and long term investment.

In the technical analysis the price movements and its momentum is taken care of. The technical analysis if a field in which the past price movement is used to predict the price movements in the future. Thus various types of charts along with various types of indicators are used to predict the future price movements. Some of the common indicators used are simple moving averages, exponential moving averages, MACD, Bollinger Band and so on. A lot of research has been done and different strategies based on these indicators are commonly used to predict the future prices based on the past price and volume data.

There is other option in front of newbie traders to take the help and support of reputed financial institutions. Money Classic Research is one such reputed advisory firm which provides accurate advice on the various segments involved in the financial market. They offer accurate stock market tips in the form of buy and sell signal with proper levels of buy and sell along with levels of stop loss.

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