Trading & investing in shares is not just talking about how much profit you get. In the world of shares, you must be able to do a decent stock analysis, so that the stocks you buy can produce maximum profit.
You must understand how to analyze good stocks. Stock analysis is not just pressing the buy and sell buttons at a certain price on the online trading screen.
In analyzing a good stock, there are some important things that you have to do, so you don't go wrong. Read this post until it runs out and practice:
1. Chart analysis (graph)
If you want to buy good stocks, you must analyze the stocks specifically. From a specific stock analysis, you can see which stocks are potential to trade, which have a short-term upward opportunity.
If you are a trader, then you should be able to read and practice chart analysis (TECHNICAL ANALYSIS) to choose stocks that are worth buying.
Technical analysis is the main analysis for stock traders who want to look for potential stocks. There are many other analyzes, but in stock analysis, you have to prioritize technical analysis, because psychological markets, bandar movements, stock patterns can be reflected in charts and technical analysis itself.
Learn also the practices of technical analysis here: Full Practice Technical Analysis Beginner Shares - Expert.
Stock Charts
2. Fundamental analysis
Fundamental analysis you must master to analyze and select stocks, because the movement of the ups and downs of shares is very much reflected in the fundamental analysis as well.
Companies that have good fundamentals will be reflected in their good share prices (liquid, fluctuating, more stable), so the risk tends to be smaller.
Fundamental analysis is the main analysis used for those of you who want to STOCK INVESTMENT (investors). Therefore, those of you who want to invest in shares, learn ways to analyze fundamentals for choosing stocks that are worth keeping for the long term.
As a stock trader, you also must understand the analysis. How important is fundamental analysis for traders? We have already discussed together here: Need Fundamental Analysis for a Trader?
Learn also fundamental analysis for choosing long-term stocks here: Fundamental Analysis & Stock Investments.
3. Market analysis (CSPI, economic conditions, market sentiment)
A good stock analysis must be done by understanding and analyzing market conditions in this case the IHSG conditions. You have to analyze the market trends at that time, tend to be bullish, bearish, or even strong bearish.
Always study economic conditions, sentiments that can affect the market, because stock movements are often influenced also by news and market sentiments that occur at that time.
So, market analysis is an analysis that is used in outline to see the condition and potential of the market in general. If the market is bad, you should be more able to refrain from buying shares, and vice versa.
Whereas technical & fundamental analysis is a more specific analysis which is used for buying and screening selected stocks.
4. When analyzing the right stocks
Good stock analysis must be done flexibly. The point is:
Analyzing stocks does not have to be done when the stock market is good
Analyzing stocks does not have to be done during trading hours
Analyzing stocks can be done anytime, in a bullish or bearish stock market. Don't assume that if the market goes down, you don't need to analyze the stock. Don't assume that stock analysis is better done when the market is bullish.
Stock analysis can be done in all market situations. You can also analyze stocks when the stock market closes, by analyzing chart / technical analysis, or analyzing the issuer's fundamentals.
And stock analysis does not mean you have to buy shares. Wait and see, observing market patterns is also an inseparable part of stock analysis.
Analyzing stocks is flexible, and when talking about stocks, we don't just talk about profits. Analysis of stocks on target is what will ultimately make you a sophisticated trader / investor (sophisticated investors, experienced).
Other factors that you must combine with the 4 points above, namely controlling emotional trading / psychological trading, managing capital management, preparing a tradin plan. Yup, all of this also needs to be considered when trading, because these points cannot be separated from the stock analysis.
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