一、Technical and Fundamental Stock Analysis
There are two types of analysis that can be applied to the markets:
A. Fundamental and
B. Technical
Fundamental analysis is when you look at the fundamentals of each company, that is such things like price to earnings (P/E Ratio), future earnings potential, dividends, income, debt and a whole host of other aspects as well. This is used for investing, and technical analysis is used for trading. It's just that simple!
Technical analysis requires the knowledge of many technical indicators in order to increase your odds on each trade. These indicators provide clues to broad and narrow-based trend patterns. There are many indicators that are used, some simple & some really complex.【交易知识macd.org.cn收集整理】
Technical analysts use these indicators to generate the buy & sell points.
In the past, the buy and hold strategy worked very well. But, right now the buy and hold days may be over for the next few years.
Volatile markets are here to stay providing double & even triple digit gains or losses (!) each year.
二、Stock Markets,Trading Systems and Technical Analysis Indicators
One of the lessons that I learned about the market is that most of the times the simplest strategies are often the most profitable!
Although many investors use several technical indicators and charts, there is no guarantee they will ever be successful in the markets.
If all it took to succeed in the markets were the most sophisticated equipment and software, then those with that equipment would make the most money.
But in reality, it takes more than fancy equipment to be successful in the market. Many people believe that if it isn't complicated, then it's not going to work. I have learned from experience that the opposite is often true.
Keep your investing techniques so simple that even a young boy could understand them. This will give you the opportunity to focus on what the market is telling you. All it takes is a simple but successful strategy to turn you into a winning investor.
All Forecasts are Wrong!
They differ in the extend of their wrongness, and it is usually possible to improve any forecast by gathering further relevant information or by processing in a more elaborate way, what is already known.
This costs money and time, the expenditure of which can only be justified if greater benefits can be obtained.
Technical analysis looks at the relationships that exist between a stock's price, its volume (the number of shares that trade hands during a single day), and other factors.
By using plotting and various mathematical models and analysis, technical analysts hope to be able to predict future changes in the price of a particular stock.
By looking for particular patterns on a price chart of a stock, for instance, technical analysts try to figure out the direction that the stock's price is likely to move in the future.
Many new traders have a tendency to confuse trading systems and technical analysis indicators. The majority of the confusion comes in the form of confusing the use of technical analysis indicators with systems.
