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The secrets of the Stock Exchange
Before investing his capital on the stock market, every good investor
has to study the market. The first question is to know if it is
the right time to invest new funds in shares. It turns out that
it is time, what will be the most appropriated sector of the market?
To answer these questions, the investor has a variety of stock-exchange
methods of analysis, but none of them really dominates the others.
Each of them has its advantages and its disadvantages.
Nowadays, the methods the most used to succeed on the stock exchange
are:
• The fundamental or financial analysis;
• The technical or graphic analysis.
The graphic analysis is a simplification of the financial analysis:
it enables anyone to analyse a share or a sector of shares on
the stock exchange without having to do the work of the financial
analyst opening every day his specialised newspaper. The graphic
analysis refers to the fluctuation of the market. It enables to
determine the evolution of a share. If the market sees the fundamentals
as bulls, the share will be rewarded with a higher price. A negative
evolution of the fundamental value of a share by the market will
reduce its price. It is as easy as that. To win on the stock exchange,
everything is in the graphic.
The main goal for an investor is to be able to identify the trend
of a mark et and to locate the time where this trend changes,
in order to participate to significant bull trends and to avoid
significant bearish trends. He can also benefit from short-term
bearish trends- for it is possible to earn money on the stock
exchange either when it is rising or decreasing- but the main
goal of an investor is to possess a share when the market is in
a significant bull trend.
To reach his goal, he has at his disposal various tools accessible
to all, which efficiency has already been proved in the past.
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