Fundamental Analysis Vs Technical Analysis

The idea is to use the analysis from each trade to learn from both your successes and your mistakes. This way you will increase your chances of picking winning stocks on a more consistent basis.

Fundamental Analysis vs Technical Analysis

When it comes to analysis in the stock market there are basically two forms. Fundamental analysis and technical analysis. Fundamental analysis is when you base your investment decisions on a company’s overall earnings.

This would include sales, profit margins, earnings growth over the last three years, earnings per share, return on equity and debt to name a few. Looking at these key factors will help you narrow down the highest quality stocks.

Technical analysis on the other hand is all about reading charts and researching volume trends. With technical analysis you must time your decisions just right if you want to make a profit.

Here are 3 key differences between the two:

With fundamental analysis the core purpose is to produce a value that you as the investor can use to compare the current stock price of the company you are interested in investing in. That value will determine if you will buy, sell or hold.

With technical analysis there is no buy, sell or hold. You literally have to pounce when the time is right.

Fundamental analysis is also very dependent on what takes place in the economy. That means if interest rates are going to change chances are your decision about a particular stock will also change.

With technical analysis what’s going on in the economy doesn’t matter one bit. All that matters is the trend the stock is following, not whether or not interest rates are increasing.

With fundamental analysis the focus is always financial ratios and numbers. With technical analysis the focus is always historical price movements.

When it boils down to it both forms of analysis can be extremely beneficial to your overall trading strategy.

Just ask any seasoned investor and they will tell you the biggest key to making big money is being able to buy the best companies at the right time. In order to do that you must understand the company’s profit margins, debt, current stock price, previous stock price and any support or resistance lines.

How To proper stock market trading

How to Play the Stock Market

A stock market is a public avenue to trade company shares. This means that you can be a shareholder (or a part-time owner) of a company when you buy their stocks. If you want to know how to play the stock market, you have to study the trends in stocks. Research on the company that you are interested in and learn how experts do their trading so you can prepare yourself for any investment you will make.

Learning financial management is one way to make you prepared. You don’t have to be a certified accountant but you do have to understand the basic principles of accountancy, management and stock market history. Read widely on finance, trading, economics and investments. This will greatly help if you want to know how to play the stock market.
Most experts will tell you that they follow simple tips in how to play the stock market. The most basic rule is buying low and selling high. This means that you invest on stocks that are for sale at low prices. Sell the stocks once they get higher, usually when a company recovers from a previous slump. You should have a good entry and exit strategy. Set a limit for yourself in monetary terms. For example, you set a limit of a thousand dollars worth of profit or loss before deciding to sell your stocks. This can protect you from the risks of losing whatever you gained in the trades.

If you really want to know how to play the stock market, you have to ask the experts like ProfitAim. There is no shame in asking the professionals and learning from the best. Some investment management software programs that can help you track and monitor your progress. Do not be discouraged if the market slumps because stocks really go up and down. Be objective in the decisions that you make. Best of all, remember that practice makes perfect. You too shall become an expert in stocks if you diligently monitor the trends and continue on improving your knowledge about stocks.

One of the initial motivators for people who put their cash in stocks is the dream of making huge amounts of money. If you do it right, such a thing is certainly a possibility. As you may have thought, you’ll need the right stock market training, a little bit of luck and the forethought to make wise decisions.

Your investment style will be dependent upon the number of hours you can spare. Being a day trader is a bad idea, unless you can allocate several hours every day! If you can allot a block of several hours each day, then you have the time to be a more involved trader and that might change your investment tactics.

You could also get ready to figure out which area of the stock market you want to focus on. For example, maybe you decide to specialize in stocks in the financial area, or perhaps energy stocks. Or perhaps you’ll decide to invest in similar groups of stocks, such as penny-stocks.
When you’re home, switch on market news. Even if you’re tinkering around the room while the channel is on, you’ll absorbed plenty of knowledge.
Learning comes in many ways, and this is surely one of the positive ones. Learning from the pros is almost always a good idea.

The Main Reasons Why You Need An Advisor

Whether taking a home loan, buying a house or purchasing share in share market, people always take suggestion from their trustworthy person like friends, relatives and their personal advisors, because if you are doing a job or business, surely you don’t have much time to pay attention to a little things, that’s why people take suggestion from CA for their tax calculations, Bank managers for loan suggestions and same as you should hire a financial advisor for your money management because they gives better solution for their investment problem, these people are expert in share market, they provides best stock tips , commodity tips, options and futures tips which are prepared by high-quality research team.

Questions which will help you to find out whether you need an advisor or not

1. Do you have proper knowledge of share market?
2. Do you understand market research and charts?
3. Do you have expertise in investment, can you take decisions in right time?
4. Do you have capabilities to monitor time, to analyse market situations and accordingly can you make changes in your portfolio?

If the answer to above question is ‘yes’ then you don’t need an advisor but if your answer is no in few points then you should take advice from a better financial advisor.

why you should hire an advisor for you?

1.Trading tips � They provide daily tips to you according to your portfolio like stock tips, stock futures tips , commodity tips and much more which make you smart in trade world, they provide market calls and recommendations to investors so that they can investment in perfect time in the suitable shares.If you want you can go for their free trial to explore their services.

2.Financial securities � Some people believe hiring an advisor is only for wealthy and upper-class people but that’s not true, Everyone at any financial status in life want to be secure, financially strong and happy as the money matters a lot. Your financial advisor provides you financial securities by understanding your investment requirements and managing your money accordingly. They take care of your wealth like they do for their own wealth.

3.Improve investment result � Your advisor knows what you actually want, he avoids your costly mistakes, he manages your risk by providing time to time alert to you that improve your investment result quickly, If you hired a financial advisor then it is his responsibility to manage each and everything related to your investment.

4.For daily reports and updates � Financial advisory firms have highly expert research team that prepares daily market reports, special reports and live news to spread the current market news.
Daily reports and research makes you more aware of share market.

Trading in stock cash market

1)Technical Analysis
2)Fundamental Analysis
3)Trading Based on News
4)Index Method based Trading
5)Stock Cash Tips based Trading
Technical analysis: In technical analysis the technical or the price movements of the commodities or the stock is analyzed. The previous or past price movements are taken as a basis for anticipation of future price movements. In technical analysis various index or indicators like weighted average and moving averages are calculated and plotted. For example one can plot 7 days moving averages and 14 days moving averages. When these graphs cross each other it gives a buy or a sell signals. Technical analysis is a whole in depth branch and to be experts in this field require a lot of effort and time.
Fundamental Analysis: In fundamental analysis the financial fundamentals of the studied to determine the suitability of the company for the investment. The profits incurred and the financial data shared by the company forms a basis of the investment.
Trading Based on News: The national and international news have a very strong impact on the price movements or the price fluctuations. Thus the latest news can be made as a basis for trading profitably and effectively.
Index Method based Trading: The index based method is related to the diversification of the portfolio of trader. The trader can invest in different sectors so that there is a mix of movement in case of downfall of a particular sector. This method has been found effective in making moderate profits.
Stock Cash Tips Based Trading: In all the method listed above, there should be a detailed knowledge of the tactics involved and knowledge should be of expert level to trade effectively and profitably. For a newbie who is new to the stock market or commodity market and don’t have much experience, they can rely on the advice of the stock market advisory firms which give advice based on the analysis by the above listed methods. These advisory firms have expert technical analysts and fundamental analysts who do in-depth analysis and give accurate stock market tips. We offer stock cash tips that are over 90% exact and will be in favour for benefits of our customers. Stock Cash Tips a system through which the intraday traders can earn. We give the calls with well tested SMS system which delivers the calls to you instantly so that you get enough time to enter the trade and achieve all the targets given in the call.
Thus above are the methods or strategies to trade effectively in the stock or the commodity markets.

Secret To Success In Stock Option

Trading in options is considered as safe and risk averse but it also requires lot of technical expertise and understanding of market and options in particular and for volume traders, as the exposure increases the risk increases.
At ProfitAim Research, we provide Option Tips, Option Trading Tips & best option calls. We also offer best Nifty Options Tips and Call put option tips, where anyone can just double their trading capital in just 15 days from trading in Stock Options.
Option Valuation techniques-
Option Valuation Techniques may include some of these factors – fundamental analysis, charting, Implied and Historical Volatility and many more.
If anyone one is trading stock option in an illiquid market, the possibility of making money in the long-run is reduced greatly. So it is important to focus on these points as well as watch the market very carefully.
Whenever you are establishing a position you should calculate the cost of initiating the position as a percentage of the underlying options they are trading.
Traits to become Billionaire from Stock Option Trading
Anyone can easily earn huge profit from Stock option segment of trading, once they understand the basics of it.
By following this option trading strategy, you can easily achieve the solid success in Options
Just focus on all these points before you start it out-
1.Manage risk:
Options are high-risk instruments, and it is important for traders to recognize how much risk they have at any point in time. Options trading provides the most effective way to growth your portfolio because of your ability to reduce risk- that is why Most successful investors opt for trading in this sector.
2.Be Quick with all Calculations:
While trading especially in options, you are always dealing with numbers. It is important for the traders to be able to easily calculate and interpret numbers, so that they can make quick calculations and estimations regarding trading.
3.Patience is the essential ingredient:
Patience is one quality that all options traders have. Patient investors are willing to wait for the market to provide the right opportunity, rather than trying to make a big win on every market movement. You will often see traders sitting idle and just watching the market, waiting for the perfect timing to enter or exit a trade. The same is not the case with amateur traders. They are impatient, unable to control their emotions, and they will be quick to enter and exit trades.
4.Maintain discipline:
To become successful, the options traders must practice discipline. Doing extensive research, identifying opportunities, setting up the right trade, forming and sticking to a strategy, setting up goals, and forming an exit strategy are all part of the discipline. A simple example of deviating from the discipline is to go with the advice of the herd. Never trust an opinion without doing your own research. You can’t skip your homework and blame the herd for your losses. Instead, you must devise an independent trading strategy that works for your situation.
5.Adopt strategies per your unique style of Trading:
Each trader has a unique style of trading; therefore, each trader should adopt strategies according to their personality. Some traders may be good at day trading, where they buy and sell options several times during the day in order to make small profits. Others may be more comfortable with position trading, where they form trading strategies to take advantage of unique opportunities, such as time decay and volatility. And others may be more comfortable with swing trading, where traders make bets on price movement.
6.Update yourself with all recent news:

Want To Become An Expert Trader

If you haven’t done so already be sure to read part one of our How To Become An Expert Trader series of articles. In it you will learn the 4 very key things every beginner should know before they start trading.

In this article, which is part two of the series, we are going to dig a little deeper and discuss 5 things you must understand if you truly want to be a successful trader.

#1 – Stop Loss Orders Are Your Friend

Stop loss orders are similar to insurance in that they protect you should one of your trades go very wrong. This means you have the ability to prevent a major loss from occurring. You set the order up to fit your needs and it will automatically be triggered when certain events take place.

Using stop loss orders will automate your trading, make it easy for you to stick to your strategy and remove your emotions from the equation.

#2 – Why Type Of Investor Are You?

There are basically two types of investors. A growth investor and a value investor. A growth investor is one who focuses on investing in companies that have strong earnings and sales growth. They are looking for profit margins that are above average and a return on equity of 17% or more.

Value investors on the other hand seek out stocks that are undervalued and have P/E ratios that are low. Understand what type of investor you are will help you craft a successful trading strategy.

#3 – Volatile Types Of Investments Should Be Avoided

Options, futures and foreign stocks are all considered volatile types of investments. Options are extremely risky because you not only have to be right about the direction the stock is going, but you also have to be right about the time frame in which it takes place.

Futures are risky because of their very speculative nature. Unless you have a few years of successful investing under your belt, it is best you completely avoid futures.

#4 – Stocks Never Go Up By Accident

When stocks go up it’s happening for a reason. Generally speaking it’s because a big investor such as a pension fund is buying in large quantities.

#5 – The Fewer Stocks You Own The Better

Instead of investing in as many stocks as you can, focus on a few high quality stocks instead. This way you aren’t spreading yourself too thin and you will be more likely to make a decent profit.

liquidity and Traders

ProfitAim is the Best stock option tips provider in India for Intraday trading in Nifty Options. We provide only sure shot stock option tips so that you can trade in stocks with high volume and best accuracy.
Stock option tips are not as like cash calls which need to put number of shares to buy, all are said in lot basis which differed from each company. Stock option calls given by ProfitAim Research is sure shot and maintained an accuracy above 90%.
Stock Option service segment is especially designed for traders who trade in Stock Options positionally. In this pack, we provide two to three calls in Stock Options and also best stock option trading tips and free stock option tips which specially focus on positional calls in stock options in industry,
We will teach you, How to trade without losing your capital in stock options?
Let us see the pros and cons of Stock Option:-
Pros of Stock Option

1.Low Entry Cost – Stock options are cheaper to buy than the stocks from which they derive their value.
2.Cost Efficiency – Options have great leveraging power. As such, an investor can obtain an option position that will mimic a stock position almost identically, but at a huge cost savings.
3.Less Risk, Depending on How You Use Them – There are situations in which buying options is riskier than owning equities, but there are also times when options can be used to reduce risk. It really depends on how you use them. Options can be less risky for investors because they require less financial commitment than equities, and they can also be less risky due to their relative imperviousness to the potentially catastrophic effects of gap openings.
4.Higher Potential Returns – You don’t need a calculator to figure out that if you spend much less money and make almost the same profit, you’ll have a higher percentage return. When they pay off, that’s what options typically offer to investors.
5.More Strategic Alternatives – The final major advantage of options is that they offer more investment alternatives. Options are a very flexible tool. There are many ways to use options to recreate other positions. We call these positions synthetics.
6.Flexibilty – For the most part, stock traders have two choices: long (bullish) or short (bearish). Conversely, options players have a wide variety of strategies at their disposal. Calls and puts can be combined in myriad different ways to profit from any type of price action: bullish, bearish, sideways, and anywhere in between. Seasoned speculators might ignore price action altogether, and instead use options to profit from dividend payouts or changes in implied volatility. Plus, options can be sold to generate income on existing stock positions, or to set the cost of entry on a planned share purchase. Rather than limiting yourself to the stark black-and-white palette of stock trading, you can use options to fine-tune your approach for any market environment.
Cons of Stock Option

Trading Tips From Millionaire Traders

You might see the best trading quote on Facebook, or listen to some audio from a successful guru, but in the end they are not going to sit behind you and tap you on the shoulder right when you are about to make a huge terrible mistake.

So here are 3 trading tips from successful traders that can really help you find success fast.

1) If I have positions going against you, you can stay in, and stay wrong, but it’s not really about being wrong, it’s about how long are you going to stay wrong that will make or break you as a trader. Most of the big wigs on Wall St, or the smart traders realise that the stock market is not going anywhere. If a trade starts to go against them, they will get out of the way rather fast.

2) If a trade is working really well, then they will keep them. Risk control is the one of the most important things with stock trading, or being a stock trader and when you work that out the solution is rather simple. Get out and live to fight another day. There is nothing worse than to see yourself in a losing trade only to see that position get even worse. The reason is, you will always have a chance to get back in. There is no need to wish and pray for a losing trade to come back. 90% of the time it never will so always remember that.

3) Making money on the stock market is never about winning. No, it’s about how you control your losses. Money management is the most important aspect to all this. You will have wins, but when you lose, what will happen is that you might make $1000, but then the next day you lose $600. But remember you are still $400 better off, by clicking a few buttons. You need to admit to yourself, eventually you are going to take a loss. But the trading process is like two steps forward and one step back. But every time you take a step back and make a loss, ensure you are not erasing all your recent gains. That is called control and will ensure your account is always increasing.

When you are entering a trade always know where you are getting in, and where you are hopping out in case the trade goes against you. This is the easiest way to become a highly successful trader. And over the long run you will continue to make money over and over.

Why not learn more about Guide?

How to Succeed as a Hockey Goalie

Maybe you won’t recognize a goalie when you see one down the road, but you definitely will, whenever you saw him on the job. Among the most important roles a hockey player can assume is being hockey goalie.

The fact is, it is now almost impossible to prevail in a Stanley cup if you only have to depend on excellent goal tending skills.

The promotion and training for hockey goalies are now painstakingly carried out, which is very different from how they used to do so in the past where the only training for the hockey goalie is for the team to fire on him.

Almost similar to solo athletes, hockey goalies should take charge of their own training and development. This is when the goalie coach proves to be a tremendous benefit. Majority of the hockey teams employ dedicated goalie coaches for all their teams from Bantam to Midget to College.

This is very often the case for established pro teams as well as college and major teams in the junior division.

These recognized teams can usually take on some dedicated fine goalie and help him to become the finest goalie.

The skills that make a hockey goalie great are really specific. Their training should be on a daily and weekly basis. If you allow chance to take over it would mean that you’re okay with the possibility of partial development. Most of the hockey goalies look for goalie specialized hockey camps when it is the off season. This season is really an important time for practice and to develop, but both must be continued throughout the season.

If you are unable to access a dedicated coach, you will have to hire your own to do a full-time job as your coach.
This is imperative if you want to move on to the pros or even embark on a successful career in college.

For goalies, it is all about performance and nothing else, they cannot even blame the team of their poor performance, not even the forwards for their inability to score enough goals nor the defense for permitting a lot of breakaways.

This has to do with the record as well as performance of these goalies. Being a goalie is the toughest position and usually two goalies play for every team although one of them play mainly during the games. Since a goalie often play throughout the game, they need to stay in great shape.

Working with a personal coach is a necessity, not some luxury, to become a successful hockey goalie.

There are lots of hockey goalie schools all around and picking the one closest to where your home is located is a very practical option.

A Free Style Of Trading

You buy the right to honors the contract for a price called premium. Options have a power of versatility and enable you to adapt/adjust your positioning according to market situations.
Stock Options are not suitable for everyone they are risky; this can be speculative in nature and carry a substantial risk of loss. Future requires high margin payment than option and also future were preferred by speculators and arbitrageurs and get unlimited profit with loss potentials, But option was preferred by only with hedger and earn an unlimited profit with unlimited loss potential.
Terms in option contract are-
Premium- also called Token, the payment given by the buyer to the seller to enjoy the privileges of an option.
Strike price/Exercise Price- A price is fixed between seller and buyer of the asset which can be bought or sold in future.
Strike Price Internal- these are different strike prices on which option contract is traded. Generally, these are 11 types, 5 are above the strike price and 5 are below the strike price.
Lots sizes- This is fixed size of a commodity on which they are traded.
Ex. Reliance industries have a lot size of 250 shares per contract.
Options are of two types through which we can buy or sell share/index in derivative markets are- call options and the put options.
CALL OPTION- It provides the right to buy a certain amount of share/index from the derivative market, strike/exercise price on or before a specific data in the future expiry data. For this option, you have to pay an option premium to the seller/writer of the option. This is because the writer of the call option assumes the risk of loss due to rise in market price of that share/index beyond its strike price on or before the expiry date. Here, the seller is obligated to sell share/index at the strike price even through it means making a loss. Below some key feature are discussed call option-
�Specifics-you will have to specify how much you are ready to pay for the call option for this you have to place a buy order with your broker specifying the strike price and the expiry date.
�Fixed price-also known as exercise price, this is fixed amount of buying the underlying assets in the future.
�Option premium- this is first paid to the exchange, which then passes it on to the option seller and when you buy the call option, you must pay the option writer a premium.
�Margins- when you sell a call option by paying an initial margin not the entire sum, once you pay the margin you have to maintain a minimum amount in your trading account or with your broker.

Let’s understand call option with this example- A land developer may want the right to purchase a vacant lot in the future, but will only want to exercise that right if certain zoning laws are put into place. The developer can buy a call option from the landowner to buy the lot at say Rs 2, 50,000 at any point in the next 3 years. Here, the land owner will not grant for free option, the land developer need to contribute a premium/down payment to lock its right. Here the premium might be Rs 6000 that the developer pays the landowner. When 2 years passed the zoning had been approved they exercised and developed his option and they bought the land for $250,000 and it has doubled the market value of plot. In alternative case the zoning approval doesn’t came, and the one year passed the option has expired. The developer will pay the market price in the cash form and the landowner will kept the $6,000.
Put Option- Market is full of buyer and seller; there can’t be a buyer without there being a seller. In the same way, option market without having put option you cannot have call option. Put are the option which provide the right to sell of underlying stock or index at a pre determined price before or on a specified date in the future. Here, the strike price and expiry date is pre-defined by the stock exchange. Call and Put options share the similar traits but in opposite nature. The following are key features of put options.
�Specifics-you will have to specify how much you are ready to pay for the call option for this you have to place a buy order with your broker specifying the strike price and the expiry date.
�Fixed / Exercise price- It is a strike price which is fixed for buy the underlying assets in the future. It is fixed by mutual consent of both the parties.