Wednesday, 2 January 2013

Analysis of Stocks - Introduction

Hello Traders,

A very HAPPY NEW YEAR to all of you.

I wanted to share with you, the way in which I analyze a particular stock. The steps are simple.
Kindly provide any suggestion or guidance that you find appropriate.

The analysis that I follow can be categorized as a Techno-Fundamental one.
I believe that fundamental as well as technical analysis of stocks are equally important.

If someone is buying a stock with a superb technical setup and the company has no earning capability, chances of success with that stock is not very great.

Again, if the fundamental of a stock is great but it does not have a technical momentum, you will end up frustrated with the non movement of the stock.

So based on my experience in the stock market, I intend to write a series of article to provide an understanding of both.

The topics that I want to cover are as below:

Fundamental Analysis:
  • Earning potential
  • Debt/Equity ratio
  • Cash Reserve
Technical Analysis:
  • Concept of Trend
  • Breakouts
  • Volume
  • Support Resistance
  • Trendlines
  • ADX
  • Entries
  • Exits
  • Stops
Money Management

Some examples

Hope you enjoy the series as much as I enjoy to write them. :)

Happy Trading!!!!

Maddy

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