Thursday, 17 December 2015

Efficient ways of trading in the Stock Market

There are various ways to trade in the Stock market. In this article we will look at the most efficient ways to trade in the Stock Market. The broad ways of trading in the Stock market includes the use of Technical analysis and fundamental analysis. Some traders also trade on the basis of candle stick patterns and on the advice of the advisory firms in form of Stock Market Tips. Also there are group of traders who follow their own strategies.
Out of the many ways of trading the use of Candle Stick Patterns for trading is an important one. The candle stick is a way of representing the price movements. The candle sticks are of two colors green and red. The green candles represent the price rise and the red candle represent the price fall. The candle also shows the high and the low of a given time period. Different candles represent the different market sentiments among the people. There are different types of candlestick patterns including some of bullish patterns and others as bearish patterns. The example includes the bullish engulfing and the bearish engulfing. The bullish engulfing indicates that the bullish trend will continue and the bearish engulfing indicates that the bearish trend will continue. Beside the bullish and bearish trends there are other patterns like doji. The doji is represented by a plus sign and it indicates that the bulls and bears are in balance. Thus the market can trend in any direction. There are also patterns like hammer and inverted hammer which represent the trend reversal conditions. Various Intraday Trading Tips can be generated using this candlestick analysis.

The advisory firms like MoneyClassic Research use the above stated indicators to anticipate the market. They provide accurate calls in the form of stock market tips to their clients. They hire technical analysts who on the basis of their research provide buy and sell signals.

No comments:

Post a comment