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How Is Stock Market Analysis Done? - Printable Version

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How Is Stock Market Analysis Done? - admin - 10-16-2020

It is very important for the future of your investments to conduct an analysis before trading any stock market transactions. For example, if you are going to buy a stock, you need to research the company in which you are going to buy a stock. The main goal in stock investments is to invest in them by identifying shares that will gain value in the future so that your investments can profit you. In order to make this determination, you need to know the analysis methods and make your trading decisions accordingly.

There are 2 types of analysis available in financial markets. These are called” Fundamental Analysis “and” Technical Analysis".

Fundamental Analysis

Fundamental analysis tools provide investors who invest in capital markets with information about any changes that may be challenged in the markets. The way to prepare yourself for all kinds of conditions of the market trading in the market is through fundamental analysis. It is entirely up to your analysis and predictions to take the necessary measures to guide your transactions in a way that can be profitable or stop the loss.

If you're buying a stock or bond on the stock market, your goal is earnings with a future dividend or capital increase. For this reason, investments should analyze these changes well and invest in shares or forecasts that will provide them with the highest return.

The growth of the return on stocks depends on economic developments, sector and corporate developments. By analyzing these developments, the actual prices of the shares are found, and purchasing decisions are made by comparing the actual prices with the market prices. According to the simplest logic, if the market price of the stock is below the actual price, the scholar orders a sale if it is above it, you can use fundamental analysis to determine the direction of these orders.

In fundamental analysis, the developments and situation of the economy in different periods are estimated. You can also predict how the sector will be affected by these developments and the changes that companies will experience from these developments in the direction of cash and guide your investments.

Fundamental Analysis;

As a company, 3 lovers are also made.

Technical Analysis
Technical analysis is a price estimate formed by predicting that price movements that lived in the past will also live in the future. Price / time charts are used in technical analysis reviews. Price estimates are made according to similar reactions that will occur in the future by analyzing the prices at that time with the reactions of buyers or sellers at different times. Estimates of future prices in capital markets can only be made using technical analysis tools.

Economic data or other fundamental analysis tools are not examined when performing technical analysis. Because the main goal of the technical analyst is the price of his feelings, the changes he has experienced and the trend. The focus of the technical analyst is supply and demand.

Technical Analysis Methods;

Price Formations,

- Continuity formations,

- Trend change formations,

Moving environments,

Fibonacci numbers,

Composite graphics,

Envelopes / Tapes,

- Bollinger Bands,

Price demonstrators,

- Relative strength index (RSI)

- Directional movement (ADX)

- Stochastic Oscillator

- MACD (moving average convergence / deviation)

– Momentum

Elliot Waves.