Stock Markets Tips - Technical analysis to predict share price movements

neha.bhonsale

New member
A technical analysis of securities is a study of past price and volume trends to judge the direction of future price movements of scrips. The movement of share prices follow a random pattern. Bulls and bears run the show. How long each of these phases would last, no one can say for certain. However, investors can resort to technical analysis to arrive at expected movements of stock prices.

Technical analysis assumes that prices take a random walk and one can judge the future price movements based on the past trends. It thus helps investors to take their investment decisions. However, ultimately, it is the market sentiments that determine the prices ruling on the stock floors.

Technical analysis has two main methods - one dependent on intuition and interpretation, the other on analysis of data. Under the first method, analysts interpret price charts depending on the pattern of movement - head-and-shoulders patterns, double-bottoms, flags and pennants etc. These patterns are used by analysts to predict share price movements.

In case of the other method of technical analysis, analysts rely on complex calculations of numbers, to crunch raw price and volume data. After this analysis process, the secondary indicators, i.e., oscillators, moving averages etc, are calculated and used to spot buying or selling opportunities. Analysts use software, scientific methods, complex equations and complex mathematical formulas to derive indicators.

Moving averages

Generally, there are two kinds of technical indicators. One type (including moving averages) is best-suited to track an upward or downward trend. The other (including oscillators) is most useful in tracking sideway movements. Among the trend-following indicators, the best-known is the moving average, which charts the average price of stocks over a period of time. With each new calculation, the oldest observation used in figuring the average is dropped and the most recent is substituted. Thus, a ten-day moving average would be calculated using prices from the past 10 days.

Generally, analysts use 2-3 moving averages to signal when to buy or sell. Then they watch closely to see when the averages begin to cross one another. They can also build moving-average envelopes around prices by adding and subtracting a fixed percentage of the average to itself by, putting 'bands' of a percentage point above and below a y-day moving average. In case a daily price moves out of the band and hence out of the envelope might be interpreted as meaning that the market is headed for an extreme.
 
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Akchat

New member
Re: Technical analysis to predict share price movements

Investing Mistakes and How to Minimize Them
Ah, those investing mistakes that everyone wishes hadn’t happened to them. Not all losing ventures in the stock market are due to foolishness. For a plethora of reasons, including reckless advice from the “experts”, emotional trading, misapplication of the basic stock investing concepts, and failure to follow a proven stock trading system all can lead to the same end. Here is a list of common errors to avoid, improving your results and limiting those investing mistakes:

1. Never invest without a clearly defined stock trading plan. A well-conceived plan will include considerations of time, risk-tolerance, and future income….and a proven system for success (such as the Japanese Candlestick stock trading method). A plan that follows these guides will steer clear of most investing mistakes.

2. Investors don’t stick to their best investment plan. All too often, investors will feel changes in the market and not have faith in their plan. Although investing is always referred to as "long term", it is rarely dealt with as such by investors who would be hard pressed to explain simple stock market basics. Again, a good investment plan including a strong system can help to evade most investing mistakes.

3. Investors fall prey to the “one-trick pony” method of investing. To think that a rising stock will continue to rise indefinitely, especially if it is a company to which the investor has ties, is fool’s gold. Remember, portfolio diversification is a hedge against investing mistake. Follow your system and take your profits according to your plan.

4. Too often, investors are stricken with "analysis paralysis”, overdosing on stock market information. Such an approach is confusing, frustrating, and leads to more investing mistakes. Something else is good to remember; sales pitches do not constitute research! Technical analysis can be dirty work, but the end result is usually worth the effort.

5. Investors frequently are looking for the “home run”, that shortcut to a huge profit which usually only leads to more investing mistakes. A beginner investing in the stock market will abandon a profitable investment plan to take a chance on securities that cause nothing but trouble. The fact is, a solid plan will likely improve risk reward ratios faster, and more securely, than that swing for the fence.

6. Many investors fail to respect the cyclical nature of the markets and buy the latest fad in securities at its highest price. They will abandon the plan and system that was improving their stock market results and in turn, create a “buy high, sell low” trend in their investing.
 

Akchat

New member
Re: Technical analysis to predict share price movements

What are Mutual Funds?
Mutual fund investing includes a variety or a combination of different asset classes including stocks, cash, and bonds. What are mutual funds? Mutual funds are referred to as a pool of money in which the investor owns a portion of the fund, therefore making him or her one of many shareholders. Once an investor owns a portion of the fund, he or she will share the value of any decreases or increases that the fund provides.

What are mutual funds and why to people invest in them?
Many invest in mutual funds for a number of reasons, however, the most valid reasons includes liquidity, diversification, cost efficiency and professional management.

What are mutual funds and what are the advantages?
Digging deeper into the benefits of investing in mutual funds, it is easy to see why so many investors opt to make this sort of investment. The liquidity of mutual funds means that investors can easily sell shares for cash and stocks and bonds can be bought and sold at whatever price is available on the open market. There are those mutual funds, however, that are traded only once each day at a fixed price. Mutual fund investing also provides portfolio diversification and low risk. Mutual funds spread money invested because when some funds are doing poorly, others in one’s portfolio typically are doing well. When faced with the question, what are mutual funds, many investors will speak of concepts such as cost efficiency and professional management. Cost efficiency deals with the concept of buying power, meaning that by pooling your money together with other investors, you are creating a collective buying power that can potentially assist you to make more money then you would have made on your own. This is a very appealing concept to most investors as you can imagine.

What are mutual funds and why do they require a fund manager?
Many investors find that they lack the time necessary to make informed investment decisions. One of the benefits that investors have when they trade mutual funds online is that they get the expertise of a fund manager. Fund managers are trained to focus on the fund’s investment strategies and goals and to make decisions that provide the best possible returns. This is a great benefit to investors who lack the knowledge and time required to invest wisely.

What are mutual funds and how do they provide earnings?
This is obviously an important question to investors of mutual funds and the answer is that mutual funds can provide earnings in three ways. The first way is through stock dividends in which the earnings are distributed in relation to the shares owned. The distributions are typically annually, quarterly, or monthly. Earnings are also provided through appreciation in which the total value of the fund hopefully rises in value. Of course if the fund goes up in value, then securities owned by the fund will rise.

What are mutual funds and what is dividend reinvestment?
Through investing in top mutual funds, investors earn capital gains when the fund manager sells securities at a profit. The investor can then choose to have the fund automatically reinvest the money in more fund shares, known as dividend reinvestment, or they can keep additional funds in a cash account. This concept is referred to as capital gain distribution.

What are mutual funds and what are the risks?
This is a question asked by investors no matter the type of investment, however, it is a common conception that mutual funds are relatively low in risk and are a great way to build a strong portfolio. The risks are minimal and are basically obvious. You can potentially lose money or you may not achieve your goals, and of course your investment funds may depreciate in value instead of rise. This again points out the benefits of a fund manager when you invest in mutual funds. What are mutual funds you ask? Well, they are definitely worth looking into and can provide a great income at a relatively low risk. This information alone should be enough to get you started.
 

ganguly111

Par 100 posts (V.I.P)
Re: Technical analysis to predict share price movements

hi vanijya......can u suggest me some gud softwares for technical analysis??
 

ashu1234

Par 100 posts (V.I.P)
Re: Technical analysis to predict share price movements

try working at Metastock its a good software for technical analysis
 

kumar_b

New member
Re: Technical analysis to predict share price movements

hi.. even i'm doing a project on the same title.. can you please send me the full project so that i can have an idea.. its very very urgent as my dead line is in a week.. so kindly help me by sending the project to ([email protected])..
 
A technical analysis of securities is a study of past price and volume trends to judge the direction of future price movements of scrips. The movement of share prices follow a random pattern. Bulls and bears run the show. How long each of these phases would last, no one can say for certain. However, investors can resort to technical analysis to arrive at expected movements of stock prices.

Technical analysis assumes that prices take a random walk and one can judge the future price movements based on the past trends. It thus helps investors to take their investment decisions. However, ultimately, it is the market sentiments that determine the prices ruling on the stock floors.

Technical analysis has two main methods - one dependent on intuition and interpretation, the other on analysis of data. Under the first method, analysts interpret price charts depending on the pattern of movement - head-and-shoulders patterns, double-bottoms, flags and pennants etc. These patterns are used by analysts to predict share price movements.

In case of the other method of technical analysis, analysts rely on complex calculations of numbers, to crunch raw price and volume data. After this analysis process, the secondary indicators, i.e., oscillators, moving averages etc, are calculated and used to spot buying or selling opportunities. Analysts use software, scientific methods, complex equations and complex mathematical formulas to derive indicators.

Moving averages

Generally, there are two kinds of technical indicators. One type (including moving averages) is best-suited to track an upward or downward trend. The other (including oscillators) is most useful in tracking sideway movements. Among the trend-following indicators, the best-known is the moving average, which charts the average price of stocks over a period of time. With each new calculation, the oldest observation used in figuring the average is dropped and the most recent is substituted. Thus, a ten-day moving average would be calculated using prices from the past 10 days.

Generally, analysts use 2-3 moving averages to signal when to buy or sell. Then they watch closely to see when the averages begin to cross one another. They can also build moving-average envelopes around prices by adding and subtracting a fixed percentage of the average to itself by, putting 'bands' of a percentage point above and below a y-day moving average. In case a daily price moves out of the band and hence out of the envelope might be interpreted as meaning that the market is headed for an extreme.

Hey neha, thanks for sharing such an important tips on stock market and i am sure it would help many people. Well, i have also have some content and would like to share it with you. So i am uploading a document and would like you to download and check it.
 

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farhanepic

New member
Online fashion portal Jabong is shedding several low-margin brands, including three-fourth of its private labels, in a bid to cut losses and position itself as a platform for premium lifestyle products. The company, unit of German ecommerce incubator Rocket Internet, will instead focus on top 200-300 brands, said a top executive of the company.
 

trifid.ram

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Trifid Research Providing Free Stock Market Tips. Trifid Research is one of the best Profitable advisory company in India. Their services not only provides the best stocks to buy and sell but are reasoned with detail researcher report.
 
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