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Friday, 18 December 2015

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The Pros and Cons of trading in Stock Market


Stock market is a place where different traders head to gain good profits. But there are always risks associated with the Stock market. Thus the trader should always trade with caution in the Stock Market.  There are always chances of good profits in the stock market but the trader should follow some good strategy for it.
Different traders follow different ways to trade effectively in the Stock Market Tips. The use of technical analysis and fundamental analysis is very common in stock trading. The fundamental analysis is mainly used for long term trading. It is used to determine the companies which are worth of investment and which can give good returns in the coming future. There are various indicators and ratios studied in the fundamental analysis. The P/E ratio is a common ratio which is used in the fundamental analysis. The long term investments reduce the risks considerably and use of a diversified portfolio even minimize the risks. Another way to choose the companies which are fundamentally sound is to choose the companies which provide regular dividends. The companies providing dividends are usually the companies having good cash flow and are fundamentally strong.
Besides the fundamental analysis the technical analysis is used for short term as well as intradaytrading. The technical analysis is a whole big field of analysis of price movements. The past price movements are used to anticipate and find the future price movements. There are lots of indicators which are studied in technical analysis. Some of the common technical indicators include moving average and RSI. The moving averages are of two types, the Simple Moving Average and the Exponential moving average.

There are many traders who trade on the basis of the advice from the advisory firm. Money ClassicResearch is one such reputed advisory firm.

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