Learn and Earn

Learn to earn via stock trading based on two main strategies – Fundamental analysis and Technical analysis.

Fundamental analysis (FA) is a study of economy, industry and company. Fundamental analysis can be conducted either Top-down or Bottom-up. A top-down trader finds securities by beginning at a macro level and drilling down to an industry and then to a particular company. A bottom-up trader finds securities by beginning at the bottom (individual companies) and then selecting the company that has the best industry group and macro-level fundamentals.

Technical analysis (TA) converts the price and volume data into charts that represent the company stock price movements over a period of time to determine the future direction. It involves interpreting the chart patterns and the indicators. Technical analysis helps to identify trends, reversal of trends and triggers for buying or selling a stock.

Combination of fundamental and technical analysis is an effective way to plan trades. Fundamental analysis improves ability to shortlist potential trading opportunities in given economic and market conditions. Technical analysis is crucial to manage right entry/ exit point of the trading position. The blended approach minimizes risk and can produce superior results.