Share Market is
a wealth generator. It is like any other business. While you earn from the
share market, it is also important to learn. Every businessman has to learn to
continue in his business and adjust to the changing markets. Share Market is
not different. In the Share Market there a variety of businesses being bought
and sold every day.
Understanding:
Why, What, Who, When, Where, and How is very important. Every single piece of
information can play an important part in whether a trade is a profitable trade
or a loss-making trade.
Some essential
parts to understand, on Share Markets:
The How part:
There is a need
to buy and sell shares. How to do it? Is understood. How to decide which share
to buy?
While news and
other information sellers are available, it is important to understand the
reason behind a sell or a buy. By following someone else’s information, it is
difficult to become successful in the share market. Doing anything without
reasoning is not a good decision.
Share Market
learning can be learned in two parts:
1. Fundamental Analysis
2. Technical Analysis.
Fundamental
Analysis tells about the value of a share. Technical Analysis talks about the
demand/supply of the share and its effect on the price.
Fundamental
Analysis is required for a medium to long term investment. A share is held for
a long period of time and fundamentals are the report card of a share from a
company. Fundamentals give the confidence to invest in a stock. There are
various fundamentals that are different for different industries. It is
important to understand these differences and look at the right details in
every share of a particular industry.
With the help of
fundamental analysis, one can stay invested for longer periods of time. Staying
invested requires timely analysis and tracking of the stock performance.
Understanding the different industries, different parameters to be followed per
industry are important. Determine if the share is doing well or not. A
fundamental study will not help, in predicting or give detail into what happens
on the next trading day.
Technical
Analysis helps in understanding the demand and supply of a certain share in the
markets. Demand and Supply help in determining the price of a stock. The price
of the stock goes up and down, based on market sentiments, news of the day,
broader global markets, and the situations not in control of the market.
Technical
Analysis and Fundamental Analysis are two faces of the same coin. Both
Technical and Fundamental Analysis capability makes a share market participant, capable of handling
short-, medium- and long-term ups and downs of the market. It is important to
understand the topics in detail and keep learning. Learning is the only way to
stay ahead and gain the required knowledge to keep moving ahead and achieve the
goals.Keep the learning going and check Traders
Gurukul, an extensive share market
classes platform; where learning is immense. Traders Gurukul provides
extensive share market classes under free and paid categories. Come learn and
be a part of lifelong learning and lifelong success in share markets.