http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns
How to earn money
from stock market tips from experts
Get LIVE STOCK MARKET TIPS FOR SURE PROFIT FROM INDIAN SHARE MARKET
Stock trading is a very risky
affair that too if anyone is untrained and inexperienced in this market. But
any person who has an eye for details and is a quick learner than earning some
quick cash is not that difficult.Once upon a time stock trading was a simple
job of buying stocks and then selling them according to one’s own conviction.
But now in present time the scenario has changed drastically. The use of technical
analysis which is a form of use science used to predict the probable future
prices of stocks from previous data has enabled experts to
provide great tips and insights into the world of stock market. This is how the
tips provided by the experts help us in maintaining a strong footing in the
stock market
Working Mechanism - Technical and qualitative analysis is performed
based on historical data regarding the price movement which is plotted on some
chart. The main reason for the popularity of these charts is the ease with
which they can be understood and interpreted by everyone.
Picking a Stock - Good volume of stocks and also high volatility
are some essentials required to gain from the trading in the stock market.
Identification of the correct stock as well as fixing of a stop-loss point is of
utmost importance.Every trader has to maintain the stop-loss in order to avert
big losses. In general the stop-loss level is held stable at 1.5-2%. This
signifies that when the stock below this percentage of the purchase price the
sock is sold. Experts usually advice traders to maintain a stop-loss level of
about the one third level of their expected margins of profit. After any stock
has been identified to be bought, experts suggest traders to study its price
trends as well as the volumes.The norm is that an uptrend is signified by a
high volume with higher price. But exceptions do happen as several people
misinterpret the stock volumes because in certain case if both the prices and
the volume keep on increasing,it indicates the end of the rally of the stock
Identifying Stock Trends – It is very important to identify stock
trends. But it is a very difficult task as the trends do not follow a simple
straight line in all occasions. No stock falls continuously on one day and
rises continuously on the nest day. All the experts of the stock market us e
take the help of various criteria to identify a stock which has high
potential. Some of the most popular analytical tool used by experts is the moving
average or Fibonacci retracement or even the index of relative strength method.
Though these techniques may sound a bit overwhelming, experts are able to use
modern software to provide very apt predictions about the stock market.
The Resistance and support levels – Many technical experts always
suggest traders to use and maintain support as well as resistance levels while
buying or selling stocks. And it is very easy to plot a support as well as a resistance
curve and also finding their original values.It is a well-known fact that stock
prices always move in a zigzag pattern and have various highs and lows in each
and every trading cycle.The support level is always plotted against the low
prices which occur in a day and the resistance level is plotted against the high price of the
day.
Further we discuss some of the main quantitative tools used
by the experts to define the market trends–
Moving Average Method
– The method of 200-day moving average is one of the most widely used tools by
experts. This method involves plotting the 200-day consolidated moving average over
the very price of the shares present in the price chart.
Index of Relative
Strength (RSI) – RSI is mainly used by experts to compare the rate of the recent
gains which have taken place against the recent losses occurred during that
period. It is done just to asses if any stock has been overbought or has been
oversold.
Fibonacci Retracement
–An assumption is mainly built up this trend. The assumption is that the market
always retraces a certain percentages which are easily predictable by the
experts. When the market retraces then they easily produce a buy or even a sell
call which is dependent on the very trend predicted.