Preface
What is Stock market?Why we should learn it?Where can let us to learn?How can it works?How can use it to make money?Everybody should learn this----Technical Analysis. It is easy to learn and it is a good way to make money. Stock market is a place that everybody trading the stock.It can easy to make money but it also easy to lose money. In Stock market , everybody use different ways to earn. We can sort this in 2 types:
one is:
Fundamental analysis
another is:
Technical Analysis
Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets. The term is used to distinguish such analysis from other types of investment analysis, such as quantitative analysis and technical analysis.
Fundamental analysis is performed on historical and present data, but with the goal of making financial forecasts. There are several possible objectives:
* to conduct a company stock valuation and predict its probable price evolution,
* to make a projection on its business performance,
* to evaluate its management and make internal business decisions,
* to calculate its credit risk.
Technical analysis is a financial markets technique that claims the ability to forecast the future direction of security prices through the study of past market data, primarily price and volume. In its purest form, technical analysis considers only the actual price behavior of the market or instrument, on the assumption that price reflects all relevant factors before an investor becomes aware of them through other channels. Technical analysts may employ models and trading rules based, for example, on price transformations, such as the relative strength index, moving averages, regressions, inter-market and intra-market price correlations, cycles or, classically, through recognition of chart patterns.
Technical analysis is widely used among traders and financial professionals, but is considered in academia to be pseudoscience. Academics such as Eugene Fama say the evidence for technical analysis is sparse and is inconsistent with the weak form of the generally-accepted efficient market hypothesis. Economist Burton Malkiel argues, "Technical analysis is an anathema to the academic world." He further argues that under the weak form of the efficient market hypothesis, "...you cannot predict future stock prices from past stock prices."
In the foreign exchange markets, its use may be more widespread than fundamental analysis. While some isolated studies have indicated that technical trading rules might lead to consistent returns in the period prior to 1987, most academic work has focused on the nature of the anomalous position of the foreign exchange market. It is speculated that this anomaly is due to central bank intervention.
Also, Technical analysis is easy to use and easy to learn. So, I introduce you to learn Technical analysis.
In following lessons, I will teach you all about Technical analysis.
