Fundamental versus technical

Not a lot of traders are asking themselves about fundamental analysis by mainly relaying on technical analysis. The logical question could be placed about how far a trader may rely on technical analysis without consulting fundamental approaches. Before answering on this question let us define a few main points about these both types of analysis.

Fundamental Analysis assumes collecting a big volume of information about company which may include but not limited by earning reports, spending reports, development reports, company's goal, company's plans and others. This type of analysis requires gathering information about the industry in which the company operates, what is prospective of this industry and how the company goes along with industry. As you may imagine this could be a lot of information it could be time consuming to process all this info for a purpose of generating a trading decision - buy or not to buy stocks of the company. Read more...

Why you should know technical analysis?

No matter which style of investment you are engaged, you have to meet and know the basic of technical analysis. As you know, fundamental analysis and technical analysis are two main ways to forecast the price trend. Fundamental analysis involves researching and evaluating the characteristics of the object. Technical analysis, on the other hand, pays

more attention to price movements. Read more...

Technical analysis charts – how to predict the future market using technical analysis charts

Arriving in the financial markets means you will invest your hard-earned money in the attempt to make profits. That's why it is important to handle transactions seriously and is not something that one should play around with. You must be crystal clear of your investments in order to benefit and minimize the risks of losing money. 

When you being trading, you will have to bear in mind that in order to make money, you will have to spend it first. Any company knows this well. They spend on advertising, and on the products they are selling. Its the same scene in a financial market. You invest money to be able to gain money. When you do not invest, your money is stagnating. Read more...

5 steps to trading success using technical analysis

5 steps to trading success using technical analysis

 

This article is for both novice and experienced traders.

 

1. Simple is better - Use a handful of technical indicators

There are dozens of technical indicators out there. It is a mistake to apply all of them at the same time as many indicators give contradictory signals and you will never find a stock that meets the requirements of all indicators. Instead, you should focus on four to five indicators to make a trading decision. Some of the popular ones include Moving average (MA), Exponential moving average (EMA), MACD, Stochastic and so on.

 

2.  Back test your indicators with historical data

Use the technical indicators you learn and test them with historical data. The more tests you do, the better. Develop a trading system that works for you based on your testing results. Try to break your system with more stocks and historical price.

 

3. Paper trade using your trading system

You should spend at least one month testing your system with end of date market data. Select a few stocks that meet the requirements of your technical indicators and see how they are doing each day.

 

4. Set a proper stop loss

No matter what stock you choose, you should always set a stop loss point. Do not hold a losing trade too long hoping it will rise again. Remember, 90% of your profit will be made on 25% of your trades. You should hold winning trades longer instead of the losing ones. What percentage is a proper stop loss point? That depends on your own trading style. If you are an aggressive trader picking volatile stocks, then you should use 8%-10%. If you are less aggressive, then you should consider 2%-5%. One thing to keep in mind, if your stop loss point is 5%, you should not pick a stock that lost more than 5% on a single day in the past 30 days to avoid being kick out.

 

5. When to sell and take profit

Remember, you will never sell at the exact top because no one knows the market for certain. You should keep your winning trades longer. However, if your technical indicators go against you, and the patterns start to fail, that’s when you should sell your stock and take profit.

 

 

MORE FREE INFORMATION

 

You can visit our website http://www.dojispace.com for more information and try our free stock scanning tool using technical indicators. Our tool will save you time and increase your trading profit.

Best technical writing fields: writing your way to fun and money

A technical writer’s work isn’t exactly among the top ten most exciting jobs in the world, but it doesn’t mean that it’s all work and no play all the time. In fact, the best technical writing fields are usually those that are fun to write. 

If you have a passion for writing and are looking for the best technical writing fields, your search has ended. This article contains the top three that have high scores both in the profit meter and fun meter!  Read more...

Basics of technical analysis as a stock analysis tool

When you want to trade in the stock market, you need to scout for the right company where you will invest. In reality though scouting is not easy. There are lots of things you need to consider. As an investor, you need to put your money where it will yield high returns. No investors would ever want to put their money, or worse, savings to stocks that will eventually lose. The simple fact is that investors invest because they want to double or triple the money they put in the company. As much as possible they look for companies that they invest in with certainty of high return and less risk. Given this goal, there are many ways that you need to analyze the movement of the stocks of a particular company. Stock analysis is actually a gateway to investing in the right company. Getting the favorable results of the stock analysis becomes the doorway to stock picks. 

 

Until you get to experience trading, you would not develop your own understanding of stock analysis. So if you are new to the stock market, you need to equip yourself of the various methods investors use for stock analysis. There are actually several stock analysis tools that you can employ to equip yourself on how to find the best company to invest in. One of which is technical analysis.

 

Character of Technical Analysis

 

Technical analysis is only one of the many tools that will guide you to see if a particular company is worth investing in. It uses charts where the behavior of the stock price is seen. For some, the first few weeks or months of the movement of stocks presented in the chart is relevant for interpretation. The high and low movement of the stocks can be interpreted if investing in stocks will be favorable. 

 

The technical analysis approach is usually done by investors who are looking for a baseline of institutional investors that causes extreme changes on stock price. This is in the attempt to read the trend of the particular stocks, may it be individual stocks or about the stock market as a whole in a given time. The charts used in technical analysis could be figure charts, point charts, logarithmic charts, and Japanese candlesticks among many others. 

 

Technical analysis is not free from argument just like any other tools used for stock analysis. It presents a chart that is indicative of the market or a stocks psychology. However, it may not necessarily be conclusive as again, there are other factors that can contribute to stock analysis other than the price and it’s trending in a particular level or period. For more comprehensive approach to stock analysis, it is better, if you as an investor will look at other methods in stocks analysis. Other methods include fundamental analysis, quantitative analysis, and trading.

 

Where to Find Comprehensive Approach

 

If you are looking to invest in stocks, you need to have comprehensive stock analysis to minimize risk in losing. For easy reference, you just have to search the Internet for sites that provide you trading information on stocks that includes the different approaches to stock analysis.  One of such site is Featured Profiles. The name itself indicates that it features company profiles with regards to stock picks. Most importantly, it carries with it the stock analysis methods as a guide for the picks. Aside from the technical analysis of the stock behavior of the particular company, it also provides the fundamental and quantitative analysis.

Tips to get technical support online

A sudden stop of a pc can be highly frustrating for obvious reasons. This can be extra annoying if you have no idea where to go for help. Every computer savvy is well acquainted with frequent technical problems in pc and knows what ill effect these problems can bring to the system. That’s why there is a thing called technical or technical support which allow people with non technical background to get their pc fixed at anytime.

Outlined below are some useful tips guiding you the ways to avail the best tech support.

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