Wednesday, June 1, 2011

Analysis of the stock market

In order to make their investments more profitable trader on the stock market must have the tools to predict how change quotation of any stock in the future. These professionals are always traded on the basis of market analysis. There are two basic methods - fundamental and technical analysis. Fundamental analysis to evaluate how valid estimates the market these or other paper, that is how their money is consistent with the revenue they can bring to the owner. Income may arise as to dividends, the company will pay on the results of its operations, interest income and participation in company management on the part of large investors and buy them in order to obtain control of the company shares on the market, as well as a number of other cases, such as If the company wants to reduce the number of traded shares and will redeem them, an exchange of stock some issues for others, etc. Accordingly, fundamental analysis and studies in the first production performance of companies, market situation, the news about the activities of large investors, etc. In this case, the calculation can be made vast array of information, including political, legal, climatic and other factors. This approach is most effective when long-term investment when the investor is more important than the general trend, ie the tendency of price changes than shorter-term market fluctuations. Such an analysis can produce independently of any literate person using the information from public sources, but certainly the most successful in the fundamental analysis of major investment companies, comprising major large staff of analysts and have access to private data sources. In turn, technical analysis suggests that all the myriad fundamental reasons are summed up and reflected in the prices of the stock market. The main object of technical analysis is the demand and supply of securities, price trends and dynamics of the volume of transactions on their sale. Application of the method of technical analysis is based on studying the behavior of prices in the past to draw a conclusion about the behavior of prices in the future. System of technical analysis based on a broad selection of indicators and models. This graphical analysis emanating from the assumption that the shape formed by the quotations refer to the preparation of schedules for certain events in the market and trend analysis for assessing the overall trend of market movement and the borders (corridors), which will change the price, and to overcome these will mean a change in trend analysis of Fibonacci levels, setting the parameters of the movement of prices after the change of trends, and many others. Mastering these techniques is not so difficult. This can be done to study the literature or completing a training course in one of the investment companies. But what about those who are for the effective use of analytical methods lack the experience and time? So investors companies offer consulting services. The client receives the recommendation of his "personal broker" on key issues of investment, which allows deliberate decisions. The consultant will regularly monitor the market situation and give you advice. At the same time you yourself can initiate transactions, and discuss them with your consultant. Personal approach and qualitative analytics to help develop an optimal strategy in line with expected returns and acceptable risk level. Interaction with an experienced manager will increase the number of profitable trades and reduce potential losses. For the novice investor problem of information security at work in the stock market remains one of the most important because the right decisions by having access to a full and accurate information. In such a diversity of sources, the undisputed leader in the rapid delivery of financial and business information, today considered to be resources of information retrieval on the Internet. With respect to the stock market can be divided into the following groups of Internet data. General legal information, guidelines, different rankings can be found on the websites of national associations of stock market participants and regulatory bodies (eg, www.naufor.ru, www.nlu.ru, www.fcsm.ru). Get detailed information about the issuers, tenders, quotations, stock indexes, on the official sites of stock exchanges, registrars, depositories (eg, www.micex.ru, www.rts.ru, www.mfd.ru). Authoritative expert opinion, and other investment ratings, current news can be tracked on the newscast, the leading news sites. For detailed information about the issuer and its activities are set out on the official websites of companies. Universal information on the stock market is also available on the websites of brokerage and investment companies. It is worth noting that major brokers are seeking to increase the efficiency of client operations, providing its investors detailed analytical reviews of the markets, expert commentary, as well as offer the opportunity to obtain prompt advice from a specialist company. Given the increasing demand, this service can be a competitive advantage of a company operating in the stock market, since all these actions are aimed at investor protection, transparency and rationality in the broker. The need to inform the client leads to the organization of special research department and information groups. In conclusion, it remains to add, selection and analysis of information sources allows the private investor to make an objective opinion about what is going on the market and make the right decision in accordance with its investment strategy.

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