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Tuesday 25 July 2017

Fundamentals for share market trading

Investors are attracted towards share market because of its quick and high returns. There is a vast difference between entering share market and being a consistent trader. Share market is unpredictable market thus the risk factor is also high. But a trader can make huge return in share market by trading after analysing fundamental and technical tools and spotting trends.

Fundamental tools help us to analyse company’s background and its return policy while technical tools help us to analyse how a particular share will perform in future based on past performance whereas trend help us to see where market will move. These three are key tool of every trading to prevent loss.

There are some fundamental tips that should be followed:

1.       Choose strong fundamental companies- Traders should avoid investing in penny stocks and select companies having strong fundamentals. This gives some assurance that the company being able to withstand share market fluctuations as well as better returns in long-term and offer greater liquidity.

2.       Complete Research of the share- Many investors avoid research as they do not want to make the effort or may be because they do not understand the technical terminologies. Investors take time to research the companies and share market to make out appropriate decisions. Investor should conduct sufficient due diligence before investing in a company which will help investors understand the future.

3.       Don’t be greedy- Traders should never be greedy with the expectations of market conditions become more favourable to their positions. The share market is highly volatile, even professional traders cannot predict the market movements, thus it is impossible for beginners. Most of the traders book loss in share market because of greediness. Investors should determine their entry and exit positions before investing their funds. Once the targets are achieved, they should close their positions.

4.       Don’t be enticed with the sector performances- At every point of time; veteran and professional traders have sector preferences. Their decisions are based on various economic and other related factors. Individual investors are advised to not get overwhelmed by these sector preferences. They should know this thing that every company in the sector is worth investing. The largest company in the sector does not always the best.

5.       Avoid investing on the basis of price- Traders should avoid to invest in the shares on the basis of share prices. Low-priced shares or penny shares are attracted a large number of investors.  The risk factor with the penny share is very high. Share prices may be low because of poor performance of the company and it is advice them to avoid investing in them.  

Thus traders should consider each and every factor related to the company before investing. They can also take advice from experts. Experts do not only provide you share market tips but they also enhance your market knowledge. The risk factor also minimises by trading with the help of trader.

We- Money Classic Investor Advisers is the leading company providing share market tips based on fundamental and technical analysis. You can also make money in share market by trading with the help of share market tips provided by us.




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