After my 1st blog post, my friends have been asking what is so special about the book that I recommended to all of you.
I believe that most of you would be more interested in the techniques of technical and fundamental analysis. (Technical & Fundamental analysis topic interest me the most as well!)
So This Morning, I would be sharing a few techniques about Technical Analysis first before Jumping into Fundamental Analysis.
WHAT IS TECHNICAL ANALYSIS?
Techinical analysis is whereby we make investment decisions by studying the charts based on 2 assumptions.
1)Past Trend could assist you in predicting the future as History would eventually repeat itself.
2)The price pattern reflects the behaviours and the confidence level of the market. It tracks the psychology of the market.
Psychology theory = GREED & FEAR
If you trade in the way like how the picture described, your money will really fly off.
The advice by professional investor like Warren Buffett:
"Be Greedy when others are fearful, Be Fearful when others are Greedy"
VOLUME INTERPRETATION
There are basically four Methods in interepreting the Volume.
This shows a healthy sign in the market. It means the trading activities are very active & the numbers of buyers are outnumbering the sellers.
When the volume & price increased by at least 1% compare to yesterday, it may signal a trend reversal from bearish to bullish soon.
Light volume with rising price might indicate that the price is losing momentum.
The price is going to drop soon, as investors are not willing to pay for the rising price.
Light volume with decreasing prices means that investors are holding on to their stocks because they are not willing to sell at a lower price.
That's all for Part I, I have MORE to share with you all, so do FOLLOW me on my blog!
If you like what I'm sharing, you could simply SHARE it out or DONATE to me by just CLICKING the " I'm a NuffNang Blogger " Button BELOW my TRAFFIC FEED.
(DONATE means once you click that button, the company will pay for me, you don't have to pay anything :D )
Will share about the Technical Analysis of KLCI chart by Tonight. Stay Tune!
Cheers!
I believe that most of you would be more interested in the techniques of technical and fundamental analysis. (Technical & Fundamental analysis topic interest me the most as well!)
So This Morning, I would be sharing a few techniques about Technical Analysis first before Jumping into Fundamental Analysis.
WHAT IS TECHNICAL ANALYSIS?
Techinical analysis is whereby we make investment decisions by studying the charts based on 2 assumptions.
1)Past Trend could assist you in predicting the future as History would eventually repeat itself.
2)The price pattern reflects the behaviours and the confidence level of the market. It tracks the psychology of the market.
Psychology theory = GREED & FEAR
If you trade in the way like how the picture described, your money will really fly off.
The advice by professional investor like Warren Buffett:
"Be Greedy when others are fearful, Be Fearful when others are Greedy"
There are basically four Methods in interepreting the Volume.
1) HEAVY VOLUME WITH RISING PRICE
This shows a healthy sign in the market. It means the trading activities are very active & the numbers of buyers are outnumbering the sellers.
When the volume & price increased by at least 1% compare to yesterday, it may signal a trend reversal from bearish to bullish soon.
2) LIGHT VOLUME WITH RISING PRICE
The price is going to drop soon, as investors are not willing to pay for the rising price.
3) HEAVY VOLUME WITH DECLINING PRICE
This is so called the "Troubling Sign" because the investors are taking their money out of the market. The same thing here, if the volume & price decreased by at least 1% compare to yesterday, it may signal a trend reversal from bullish to bearish soon.
4) LIGHT VOLUME WITH DECLINING PRICE
Light volume with decreasing prices means that investors are holding on to their stocks because they are not willing to sell at a lower price.
That's all for Part I, I have MORE to share with you all, so do FOLLOW me on my blog!
If you like what I'm sharing, you could simply SHARE it out or DONATE to me by just CLICKING the " I'm a NuffNang Blogger " Button BELOW my TRAFFIC FEED.
(DONATE means once you click that button, the company will pay for me, you don't have to pay anything :D )
Will share about the Technical Analysis of KLCI chart by Tonight. Stay Tune!
Cheers!
No comments:
Post a Comment