Technical and Fundamental Analysis: Secret to Success in Stock Market

Different traders, trade with different mindset in the Stock Market. There are a lot of strategies, which traders follow to trade effectively in the Stock Market. Some traders, trade on the basis of stock cash tips from expert advisory firms like ProfitAim Research.

Strategies to Earn in Stock Market

There are different strategies, which the traders can follow in stock market venture. The ultimate aim is to buy at a low price and sell at a high price to gain the profit. Thus the trader can buy first at a low price and then sell at a high price. This step is known as "long" the stock. Similarly the trader can sell at a high price first and then buy at a lower price afterwards. This process is known as "Short" the Stock.

Anticipate the Market Movement with Technical and Fundamental Analysis

There are some important ways like fundamental analysis and technical analysis, to predict the movement of the stocks and thus long or short the stock to gain profits. In fundamental analysis the key fundamentals like company’s history, its past earnings and P/E ration are calculated. Fundamental analysis is done to determine the stocks which are fundamentally strong and thus will give good performance in the future. Fundamental analysis is used to determine the stocks, in which the investors can invest for long term.

After the fundamental analysis, the Technical analysis is carried out. In Technical analysis, the past movement of the stocks is analyzed to predict the price movement in the future. The charts of the stocks along with various time frames are plotted to understand the movement of the scrip and to identify the trend. The trend is an important concept in fundamental analysis and it is always advisable to trade with the trend or to trade in the direction of the trend. The trend can be up-trend, down trend or flat-trend. In case of an uptrend it is advisable to go long as the price of the stock is expected to go high. In case of a down trend the trader is advised to "short" as the price of the stock is expected to go down.

Thus, we have seen that the fundamental and technical analysis, play an important role in anticipating the movement of the stocks. The traders are advised to take the help of expert advisory firms like ProfitAim Research to trade effectively in the Stock Market. These advisory firms provide stock tips in form of Stock Cash Tips, after proper technical and fundamental analysis.

ProfitAim is a Sebi Registered Advisory Company and we provide Stock and commodity Tips to small & Hni traders of Equity and Commodity market.