share market free course-1

Welcome to our  share market  free course-1.Learn the fundamentals and technical in our share market free course. Discover key concepts such as stock exchanges, investing strategies, risk management, and more. Perfect for beginners seeking to build a solid foundation in the world of share trading. Start your journey to financial knowledge and potential prosperity today!

 

Type of market Analysis

In share market free course we discus about Technical analysis, fundamental analysis and sentimental analysis.In order to maximize gains and reduce losses, traders typically turn to fundamental, technical and sentimental analysis. While fundamental analysis tells traders about intrinsic market values, technical analysis relies on past performance of a financial instrument. The third branch, sentimental analysis is used to determine the general attitude of traders, which shapes the overall market mood, within a specific time frame.

There is no absolute way to tell which way the markets will go and due to high volatility, losses are always a possibility. But it helps to do your research.

Fundamental Analysis

• The goal of fundamental analysis is to determine whether a company’s future value is accurately reflected in its current stock price.
• When a fundamental review is completed the analyst may decide the stock is an attractive opportunity because the market has understands its future prospects. The analyst also may determine the stock to be a hold or sell if the values fully reflected in the price.
• Fundamental analysis is often used by long-term investors who focus on the overall health and performance of the underlying asset, as opposed to short-term traders who may rely more on technical analysis and market trends.
• By analyzing these fundamental factors, investors aim to determine whether an asset is undervalued or overvalued in the market. They seek to make informed decisions based on the asset’s true worth and its potential for long-term growth.

In summary, fundamental analysis provides a comprehensive and fundamental understanding of an asset’s value and prospects, helping investors make sound investment decisions based on the underlying fundamentals of the company or asset.

Technical Analysis

Technical analysis is a method used to evaluate financial assets and forecast price movements by analyzing historical market data, primarily through charts and patterns. It relies on the belief that past market behavior can provide insights into future price trends. Traders and investors use various technical indicators, such as moving averages, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), and chart patterns like support and resistance levels, to make informed decisions about buying or selling assets. While technical analysis can be valuable for short-term trading strategies, it’s essential to combine it with other analysis methods and consider fundamental factors for a comprehensive investment approach.

Technical analysts believe past trading activity and  price changes of a security can be valuable indicators of the security’s future movements.

Profitable Trading Tips

• Day traders must understand the win/loss ratio, risk/reward ratio, and win rate to be successful.
• Win/loss and win rate metrics tell you how often you are winning vs losing money on your trades.
• Your risk/reward ratio express how much you are willing to risk losing vs how much you could win on your trades
• In general, you should aim for a win rate of 50% to 70%, a win/loss ratio above 1.0, and a risk/ reward ratio below 1.0.
• Always put stop loss.

Trends and how to identify them

• A trend is the general direction of the price of a market,asset, or metric.
• Uptrend  are marked by rising  data points, such as higher swing highs and higher swing lows.
• Downtrends are marked by falling data points, such as lower swing lows and lower swing highs.
• Many traders opt to trade in the same direction  as  the trend, attempting to profit from a continuation of that trend.
• Price action, trend lines, and technical indicators are all tools that can help identify the trend and warn when it is reversing.

Concept of swing high/low

• A swing high as a technical indicator signaled by a price peak followed by a decline.
• Higher swing highs are associated with up trends and  lower swing highs are associated with down trends or a loss of momentum in the uptrend.
• How far swing highs are apart may provide insights into trends strength. a swing high that is much higher than the prior swing highs shows buyers are eager to get in.
• Swing highs are useful for determining trend direction and strength and entering or exiting trades. They are also applicable to analyzing indicators.

concept of Short Selling

• Short selling occurs when an investor borrows a security and sells it on the open market, planning to buy it back later for less money.
• Shorts sellers bet on, and profit from, a drop in a security’s price. This can be contrasted with long investors who want the price to go up.
• Short selling has a high risk/reward ratio: it can offer big profits, but losses can mount quickly and infinity due to margin calls.

Retracement vs Reversal

Retracement and reversal are two fundamental concepts in the share market, used by traders and analysts to understand and predict price movements.

1. Retracement: In the share market, retracements refers to a temporary reversal in the prevailing trend. During an uptrend, for example, the price may experience short-term declines before resuming its upward trajectory. Similarly, in a downtrend, the price might witness temporary bounces before continuing its downward movement. Traders often use various technical analysis tools like Fibonacci retracements to identify potential levels where such reversals could occur. Retracements are considered normal and healthy within a prevailing trend and are typically seen as opportunities for traders to enter or add to positions at better prices.
2. Reversal: A reversal, on the other hand, signifies a more significant and lasting change in the market trend. In this context, an uptrend reverses into a downtrend, or vice versa. Reversals often indicate a shift in market sentiment, leading to a change in the overall direction of the price movement. These can be challenging to identify, but traders use a combination of technical indicators, chart patterns, and fundamental analysis to spot potential reversal signals. Reversals can present opportunities for traders to change their positions or to close existing ones to avoid potential losses.