Learn Two Easy Trading Strategies for Beginners in the Market
<p>The attempt to predict accurately the future course of market prices and thus the appropriate time to buy or sell a share must rank as one of investors’ most persistent endeavors. This search for the golden egg has spawned a variety of Strategies , ranging from the scientific to the occult. There are people today who forecast future share prices by measuring sunspots, looking at the phases of the moon, Lol . Most, however, opt for one of two Strategies: <strong>Technical And Fundamental Strategies</strong>.</p>
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<li>Technical analysis is the method of predicting the appropriate time to buy or sell a share used by those believing in the castle-in-the-air view of market share pricing.</li>
<li>Fundamental analysis is the technique of applying the tenets of the firm-foundation theory to the selection of individual market share.</li>
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<p>*Technical analysis is essentially the making and interpreting of share charts. Thus, its practitioners, a small but abnormally dedicated cult, are called chartists. They study the past-both the movements of common market prices and the volume of trading-for a clue to the direction of future change. Most chartists believe that the market is only 10 percent logical and 90 percent psychological. They generally subscribe to the castle-in-the-air school and view the investment game as one of anticipating how the other players will behave. Charts, of course, tell only what the other players have been doing in the past. The chartist’s hope, however, is that a careful study of what the other players are doing will shed light on what the crowd is likely to do in the future.</p>
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