ALL >> Education >> View Article
Why Is Technical Analysis Important In Stock Trading
Total Articles: 44
You may have been investing in the stock market without ever delving deep into the technicalities of a stock. Most of your decisions are based on the recommendations you come across from the experts. While this may have held you in good stead so far you shouldn’t overlook the importance of technical analysis. As you grow your investments and hope to earn higher returns you need to learn the art of technically analyzing stocks and be able to make your own decisions. Here are some of the ways in which mastering the art of technical analysis shall help you :
• Study the health: Studying factors such as P/B ratio, dividend history, P/X ratio, volume, the percentage of deliveries, operating profit and so on you will be able to judge the health of a company. This will let you make informed decisions as far as stock is concerned and not base your buy calls on half-truths and lies that often float around in the market.
• You make your decisions: So far most of your investments may have been based on recommendations. While it is good to listen to the experts most of them are picky and choosy about the stocks they recommend. Small caps which promise you higher returns are often outside their radar. When you develop skills in the technical analysis you will be able to analyze stocks of your choice and not depend on others to help you make the right calls.
• Price prediction: The most important aspect of stock market trading is buying and selling at the right price. Is a stock overvalued? Does a bull stock’s price still have headroom for growth? Should you sell the stock now or enter in it? These are some of the things that you always have in mind. While technical analysis may not offer answers to all your questions it will surely give you a direction to work on.
• Support & Resistance Levels: You may have heard these two terms being used by analysts while discussing stocks. Support and resistance levels help you understand when to buy and sell stocks and you need to develop the art to identify support and resistance levels.
Technical analysis is a scientific way of analyzing a stock. It keeps out all the intangible factors and emotions out of the decision-making process and improves the odds of reaching an accurate forecast with your investments. Sign up for an online technical analysis course and you will be able to earn healthily from your investments.
In this write-up, we discuss the importance of technical analysis with respect to stock trading and how you can earn healthily from the market studying the technical aspect of a stock.
In this write-up, we discuss the importance of technical analysis with respect to stock trading and how you can earn healthily from the market studying the technical aspect of a stock.A version of the article was first published on the Medium.
Anwar Ali is an Internet Marketing Professional having extensive experience in SEO and SMO, PPC. I'm also a Web Designing/Development Expert. I Have more then 6+ year experience in digital marketing including the many marketing techniques as Digital Marketing, Online Marketing, Email Marketing, Logo Design, Website Design, Website development, Website Promotion, Google Webmaster, Google Analytics, Bing Webmaster, Search engine Optimization, Internet Marketing, Google Places etc.
Education Articles1. The Right Economics Tuition For You
Author: Economics Tuition
2. Online Courses - Pro-elearning | Software Online Training
3. How To Choose Your College For Bms
Author: Indsearch Pune
4. Php Frameworks Guide & Top 10 Best Php Framework 2019
5. Top 7 Ui Trends Users Will Love In 2019
6. Rajasthan Patwari Vacancy 2019 | Rajathan Patwari Recruitment 2019
7. Why English Language Training Is A Must For The Students Who Are Moving Abroad
Author: Mia Seal
8. Real Fur And Its Benefits In A Brief
Author: Ravjit Soin
9. Answering Your Frequently Asked Questions About Civil Engineering
Author: SIT Pune
10. 4 Signs To Guarantee That You Have Chosen The Right Gofundme Alternative
Author: Steven Bergeron
11. The New Highlights Coming To Java 13
12. Options To Hire The Most Sincere And Experienced Security Camera Experts
Author: Mark Palsan
13. Steps To Become A Smart Driver For Getting A Better Earning Opportunity
Author: Alzbeta Berka
14. Options To Become A Qualified Teacher For Increasing Your Employability
Author: Alzbeta Berka
15. Advanced Digital Marketing Training In Madhapur Hyderabad