In this Digital era, Making money online is not though, But for making money online you should be expertise in any one skill , In this session we will talk about making money from Stock Market.
How to Make Money from Stock Market
To start Trading , The first requirement you should have a Demat Account. After opening Demant Account, You should learn how to Buy/Sell Stocks from your trading account, For that you have to select the Stock you want to Buy/Sell from your account.
But how we know weather to Buy a Stock or sell a stock? For that we use Technical Analysis, Technical analysis plays one of the major role in Trading Understanding Technical Analysis is not that tough, Not much easy as well. All it needs is practice after learning. We will discuss in detail about all the factors that plays major role in making money from market.
Technical Analysis
Technical analysis is a Most famous method used in trading and investing to understand and Forecast price movements of financial assets, such as stocks, currencies, commodities, or indices.Unlike fundamental analysis, which focuses on a company’s financial health and intrinsic value, technical analysis relies on historical price and volume data, as well as chart patterns and various technical indicators.
Here are key components of technical analysis:
Price Charts: Technical analysts primarily use price charts to visualize the historical performance of an asset. The most common types of charts are line charts, bar charts, and candlestick charts. These charts display the open, high, low, and close prices for a given time period.
Trends: One of the fundamental principles of technical analysis is the idea that prices move in trends. Analysts identify trends as upward (bullish), downward (bearish), or sideways (neutral). Recognizing trends helps traders make informed decisions about buying or selling.
Support and Resistance Levels: Support and resistance levels are horizontal lines drawn on a price chart to identify key levels where the price has historically had difficulty moving above (resistance) or below (support). These levels are crucial in predicting potential price reversals.
Chart Patterns: Technical analysts study chart patterns to identify potential trend reversals or continuations. Common chart patterns include head and shoulders, double tops and bottoms, triangles, and flags. Analysts use these patterns to make predictions about future price movements.
Technical Indicators: Technical indicators are mathematical calculations applied to price and volume data to help traders make sense of market trends and momentum. Examples of technical indicators include moving averages, Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Bollinger Bands.
Volume Analysis: Volume refers to the number of shares or contracts traded during a specific period. Volume analysis helps confirm the strength of a price movement. For example, an increase in price accompanied by high volume may indicate a strong trend.
Dow Theory: Dow Theory, developed by Charles Dow, is a foundational concept in technical analysis. It suggests that market prices reflect all available information and that price movements follow trends. Dow Theory identifies three types of trends: primary trends, secondary trends, and minor trends.
Elliott Wave Theory: Elliott Wave Theory is a more complex technical analysis approach that attempts to predict future price movements by identifying repeating wave patterns. It suggests that market movements follow a five-wave pattern in the direction of the main trend, followed by a three-wave corrective pattern.
Conclusion:
Technical analysis is widely used by short-term traders, day traders, and swing traders who seek to profit from short-term price fluctuations. However, it’s essential to note that technical analysis has its critics, and some argue that it may not always provide accurate predictions, especially in the long term. Traders often use a combination of technical and fundamental analysis to make more informed decisions.
