Stock Market Capitalization 5 Steps
This is a simple 5-step process that can help you start on the right track.
1. Looking for stock
This is the most obvious and difficult step in stock trading. There are more than 10,000 stocks to conduct a good way to negotiate, first of all to consider which industry you want to trade.
Of course, you will see an industry that gets good media coverage, where the stock is in progress. There is reason to believe that in the industry experiencing a severe recession, you will not be too optimistic.
Once you decide which industry to invest in, you can then start to study the stock.
Before buying a variety of stocks, it is best to develop a set of rules.
2. Basic Analysis
Many short-term traders may argue that there is a need for any fundamental analysis, but it may be crucial to understand the past history of stocks and the latest news about stocks.
A good example is the profit season. If you intend to buy a stock that missed a profit target in the past three quarters, I would say it might be wise to be careful
3. Technical Analysis
This is part of the index, quantity, moving average, relative strength index, support level, resistance level and so on. Whichever you choose, whether it is backward or leading, it may depend entirely on where you get information.
For the first time to start, keep it simple, first use too many indicators is to achieve a big loss guarantee. First use one or two indicators to comfort. A thorough understanding of their complexity, you will embark on a more profitable industry.
4. Follow your choice.
Once you have committed several transactions, you should start managing them correctly. For example, if the stock is short-term trading, then you will obviously pay more attention to your exit signal. If this is a longer-term deal, then you certainly need to set a different time frame, such as weekly or monthly checks on the stock. This effectively frees you and gives you more time to do other things.
You can use this time to wisely keep the latest news, determine your price target, set a stop loss, and follow the other stocks you might want to buy later.
5. Focus on the larger picture
It is best to follow the specific department of the stock you purchased. For example, if you expect the stock to rise, you buy oil stocks almost all the other stocks in the oil sector are also rising, then it is confirmed that you may make the right decision.
But of course this is also true. If the oil sector begins to decline, then this may be a good idea to profit and run. By knowing and knowing which industries are warming or cooling, it is in your interest