Friday, June 20, 2014

Stock Market

Effective Stock Trading

Stock Market is like the wavering sea with countless opportunities/threats. Some take out pearls, some come out with fish and some come out simply wet. Stock Market is utilized in multiple ways depending on how much risk a trader is willing to incur. Traders usually focus on daily, weekly, monthly and long term earning. To maximize the financial benefits, you need to decide what kind of stock trader you want to become. The right fit depends on personality, time availability, financial prudence and capital investment. Almost all types of stock trading are potentially profitable.
Precisely speaking, you should be flexible (not volatile) towards different types of strategies in your market system and your investment approach, so that you can adjust to the market, be it bearish, bullish or even range bound. Although, the future remains unknown, investors who come with good research, use independent thinking rather than naively follow the crowd, have the mental fortitude to stick to their targets and sell once target returns have been achieved, are likely to realize superior returns on their equity investment portfolios.
A day trader watches the daily behaviour of share prices and tries to get a margin on account of daily fluctuations. A day trader is a proactive and professional market participant who purchases shares of a company with a focus on her technical and fundamental variables. A prudent day trader watches price fluctuations, keenly, and tries to profit from short-term market volatilities. 

Investor Awareness

Saturday, June 7, 2014

Stock Market - Investment Planning

Technical Analysis Vs. Fundamental Analysis

Successful Share Trading depends on the conceptual ability of trader to predict accurately prices and practical ingenuity to manage efficiently risks. Two techniques are commonly used to forecast prices - Fundamental Analysis & Technical Analysis. Technical Analysis forecasts the direction of prices through the study of past market data of price and volume. On the other hand, Fundamental Analysis determines the intrinsic or true value of the shares. If the intrinsic value is higher than the market price it is recommended to buy the share, if it is equal to the market price hold the share and if it is less than the market price sell the shares. The fundamental analysis consists of four types of analyses, that is, Economic Analysis, Industry Analysis, Company Analysis, & CEO/Top Management Analysis.

Investors can use these different but to some extent complementary methods for stock trading. For example, a fundamental investor may use technical arguments for deciding entry and exit points, while, a technical investor can use fundamentals to limit their universe of possible stock to 'Well Performing' companies.

Muhammad Ilyas
CEO
Silverline Management Consultants & Software Engineers (SMCSE)