Fundamentals of Stock Market

Share market trading allows the traders to buy and sell the stocks or shares of publicly held companies. The stocks are traded over some exchange. Investors buy these stocks at the lowest possible price and try to sell it at the highest possible price to gain profit from the stock. This phenomenon sounds simple. However, in practice, it is not that to accomplish a profit.

 

Now, the question arises how will you come to know that the price of stocks has really gone up? In order to solve this issue, there are many strategies and technical indicators, which hints the price hike and lowering the prices. There are price charts in stock trading which represents the previous prices of the stocks over time. There are two scales in the chart representation. Y-axis is the price scale and the X-axis is the time scale. Charts are used to analyze the price movements. When the prices of stocks become higher, then the market is said to be uptrend market. Similarly, when prices of stocks become lower, then the market is said to be the downtrend market.

Several technical indicators are applied to the charts to predict the price movements. The data of stock prices are derived by applying certain formulae. These derived stock prices are plotted on charts and the market trend is predicted. As per the prediction, the investors take the decision of buying and selling the stocks.

Some of the Technical indicators are Moving Average Convergence/ Divergence indicator, Relative Strength Indicator, Parabolic SAR, Adaptive Moving Average, Accumulation/Distribution and much more. However, in the actual implementation of technical indicators is not that easy. Not all traders are capable of driving the accurate stock trading tips by deploying trading strategies and technical indicator. This is the reason why advisory firms are established. 

The advisory firms hire technical analysts, those generate the accurate tips and best opportunities to trade and provide the tips to their investor customers. Out of many advisory firms, Money Classic is best to offer share market tips. Some traders wish to trade in the stocks raised by the publically held companies, whereas some traders trade in commodities. A commodity market is a place where traders trade in mainly economic sectors.

There are two types of trading: soft commodities and hard commodities. Soft commodities include coffee, cocoa, sugar, corn, wheat, soybean, fruit etc. An example of hard commodities is gold, copper, aluminum, silver crude oil etc.