Technical Analysis for Investors

Technical analysis is necessary for getting safe return on investment. Without any technical analysis of your investment, your invested money is just gambling. Remember, you have limited money and you have to achieve success with this money. So, learn technical analysis if you want to become investor.

Here, we are preparing the guide for  investors. We can not say this is complete guide but it is in processing.




(A) Human Behavior Study 

In technical analysis for our investment in stock or bonds, we study the changing prices and charts.There are lots of factors which affect the rise or fall in the price. But one is the major factor is the want of human. Suppose, a person sells his stock, it means, he wants to sell. Now, his wants are affected with his family, relatives, friends, his habits, his society and his own willpower. Suppose, a person buys his stock, it means, he wants to buy. Now, his wants are again affected with same people and his habits and willpower. Now, one can say, a person will buy if prices will rise or he will sell when prices will fall without affecting the other human beings. For example, a person is working on duty. Before marriage, he is working with Rs. 5000 but after marriage, he starts to demand Rs. 10,000. Why? Effect of his wife. Effect of increasing the expenses. Yes, it means every human being's decisions are affected from other human being. So, in technical nature, we have to analyse the human behavior more deeply.


(B) Historical Prices Analysis 

An investor should analysis all past prices of same stock. If you see past record of same stock, you can expect its future prices. It will not 100% correct but, trend helps you for better decision. This technical analysis does not apply on stock market but it applies everywhere. In IT sector, when google rank a web-page through his page rank. It has 200 signals. One of them is past history of the website. It is must for beginner investors to study past prices of same share or same company's shares.


(C) Understanding of All Tools for Technical Analysis 


i) Price Fields

First tool is price fields which you have to understand. In stock market, there is not a single price. There will have open price, high price, low price, close price, volume price, bid price and ask price. To know its correct meaning is necessary for analysis. For example. What will be the relationship between you and your father's sister. So, above prices are the definitions. So, you must understand it.

open price is the first trade price. Close price is the last trade price in same period. High price is the highest price which buyer want to pay. Low price is the lowest price which seller wants to accept. Bid may on any price but ask the price which buyer has to pay


ii) Charts


Whole theory of technical analysis is on chart. Chart is the image of the history of past prices of same stock. When we have studied the price field. We try to create relationship in these prices in whole trend by representing it on charts. So, understand different charts.

Line chart - Simple lines for showing trend of price.
Bar chart - Bars of showing high, close, open and low price of stock in different periods.


iii) Support and Resistance

In this word, there are two big powers. One is support and other is resistance. Support power is of buyer. Buyer always want to support to decrease prices. Because, they get stock at cheap rates. But other power is of seller. This power name is resistance. Seller always tries to best to stop of decreasing prices. So, there are lots of computer software who represent the relationship between support power and resistance power. By studying it, investor will go to pro-level and take best decision.


iv) Traders' Remorse

When buyer break the resistance power of sellers, it will create traders' remorse. It means, it is success of support over resistance power. So, seller has to make new resistance power. In the chart, they have to make the point. So, your investment decision will be more optimized.


v) Trends

In the stock market, different buyers and different sellers buy and sells for different purposes everyday. If we collect all these data, we can make its trend. Trend means direction of changing of prices. Whether prices are decreasing or increasing.


vi) Moving Average

When we have to find the trend of large time period, we have to learn moving average tool. For example, we have to study 10 years data of prices of any stock. So, we can make small group of prices n upto n period and n prices divide with n period, it will be average price of n period. So, my finding it, we can find the trend of prices.

Related : Investment Analysis 

COMMENTS

Comments on this Website
.
Share above Content to Your Friends



Name

access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
false
ltr
item
Accounting Education: Technical Analysis for Investors
Technical Analysis for Investors
http://3.bp.blogspot.com/-yXaxlr0-VTA/UyKGvERoKDI/AAAAAAAANLM/THaAEk-LCK8/s1600/technical+analysis+for+investors.PNG
http://3.bp.blogspot.com/-yXaxlr0-VTA/UyKGvERoKDI/AAAAAAAANLM/THaAEk-LCK8/s72-c/technical+analysis+for+investors.PNG
Accounting Education
http://www.svtuition.org/2014/03/technical-analysis-for-investors.html
http://www.svtuition.org/
http://www.svtuition.org/
http://www.svtuition.org/2014/03/technical-analysis-for-investors.html
true
2410664366776677676
UTF-8
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock