what is the technics of trading of shares?

Answer 1

What are the techniques of trading shares? You don't ask for much for 2-10 points, do you?

Some of the basics, assuming the basics of a brokerage arrangement wherein a company actually makes the exchange at a stock exchange (or swap between fortuitous internal orders for buying and selling that happen to come up at about the same time), involve purpose. At the start, there are two primary distinctions--speculation and investment. Speculations are dealing with stocks for a short-term price advantage. Investments are more long-term and can include price appreciation, dividends paid, a convenient holding for money against currency values (if the Yen were going up and the dollar down and I had my money invested in Japanese companies but not American, then I would likely hold some value simply by virtue of the country's currency), etc.

The simplest method is according to the tired old line, "Buy low, sell high". But that is easier said than done because prices fluctuate for a variety of reasons. Suppose we looked at two companies which we will call A and B. Both are on the list for the price being at the low for the year, so in the last 52 weeks, the price was not lower. Then buy shares in both. But the price for A drops further and the price for B rises. You've got to figure out why. Some things are seasonal, somethings simply out of favor because so many people are spending money on other things. Some things some times don't move much and as time marches on a previous near-high can become the new low. If business improves, then buying at the low for the year will be good because it will be going higher. Some companies are selling at their low for the year because things are bad and the price is going lower.

And this brings the next issue, the momentum of movement. Prices going down tend to go down until something significantly changes the momentum of motion. Prices going up sometimes tend to go up until reality meets euphoria and says, "Hey, stupid, we've gone too far already." There are people who look at price charts and make their decisions and they are called chartists or technical traders.

Volume of sales is also part of the picture. If price is going down and volume is increasing, the question is are they buying or selling? If a trade takes place then both have happened but judging the crowd is part of the issue. If the mass of humanity trading is trying to sell, dumping their shares, then some folks say, "I can get this cheap" and offer to buy, but at a lower price, which then means the price falls more. The opposite also is true, but if people are also buying when the mob is dumping, those buying might know something.

And this brings us to the fundamentalists. These are people who look at the business trends and how well the company is doing business. Is it making a profit? Good. Are its competitors making more profit? Good, we will look closer to the competitors. Are there prospects of continuing to make a profit? Good. Do the competitors have better prospects? Good, we will look closer at those competitors.

All of these are speculative things that I've just generally touched, but there are simply those who have a need to invest for the long run and want to put their money somewhere to go to work--where the money works, not trying to guess the market and make money over the sale of stock. For instance, I can invest in companies that have been mining gold for years and making bunches of bucks for years doing it, or I can get shares of a company opening a new mine or an additional field. Once we solve the problem of honesty (Mark Twain said of his gold mine investments, a gold mine is just a hole in the ground surrounded by liars), we look at prospects. If the information is true or even largely true, will they make money by digging on that piece of ground? Then if I buy stock in that company, I am buying part of that action--the digging for precious metals, not the stock market action. Investing, be it mines or refineries or retail stores, is doing something productive, otherwise you are just betting. In the long run, assuming the company does dig up gold and it does enough of it to cover its cost and have money left over (profits), then I make money with my investment.

Techniques, then have to do with purpose and available information.

Answer 2

the in elementary words thanks to achieve fulfillment with technical diagnosis is journey. if you're afraid that a inventory is sure to fall, initially, you want to continually have a stategy/plan to go out, decrease the losses very short, and secondly there are signals which consists of the divergence of MACD & Stochastics that may allow you to understand a inventory is about to modify direction, again you have to be experienced at seeing those issues on the chart. A inventory's direction is predictable and there are fairly some day investors that attempt this for a residing and performance lavish existence. clone of any organisation, you want to the way in which to make huge salary on your good trades and reduce expenses through reducing your losses sharply. you should develop into an remarkable funds manager.

Answer 3

Share trading is a pretty complex affair to those new to it, and takes alot more explaining than is possible on a site like this.
The best place to start learning about it all are these two websites:
http://www.investopedia.com
http://www.fool.com/school/basics/basics.htm

Answer 4

Hi, i know what your question is.

i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

I am sure that your Investing will benefit greatly from this website.

http://investing.sitesled.com/

Good Luck and Best Wishes!

Answer 5

Check out the following site: http://estrikegold.com/
They even conduct a course called 'M3 Course' on the basics and nuances of the stock market. They also provide an interactive tutorial CD-ROM for the asking. All the best to you.

Answer 6

Do not get too technichal. Take it just as a calculated risk

Answer 7

Purchase and sell. Or vice-versa.

Answer 8

as the popular saying goes" BE FEARFUL WHEN EVERYBODY IS GREEDY 7& BE GREEDY WHEN EVERY BODY IS FEARFUL"

Answer 9

It is not technological, it is all a guessing game.