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What are top stock market analysis tool…!!

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stock analysis tool

Investment is one of the best options to grow wealth, especially in stocks. But investment in the stock market requires proper analysis. It helps an investor to identify the worth of a stock, even before investing in it. With the help of analysis, an investor concludes whether to buy or sell a stock. A proper analysis of past and current data helps you selecting the right stock. It also provides an edge to the investor. There are so many factors to look for, such as price, effect of buy and sell as well as trend analysis.  But to make a successful trade, an investor needs knowledge, ability and the tools to be successful.  Here a list of stock market analysis tool before picking any stock.  

Fundamental analysis Tool : 

Before investing in any stock, a trader or an investor must try to find the true value of the equity according to one’s analysis. In order to find out, the real value of the stock, an investor must look upon the financial statements of the company. In order to conduct the fundamental analysis, one must go deep into the company information and get to know the strength and weakness of the company. Before making a fundamental analysis of a company, an investor must look for the following information : 

  • Basic company information, recent news, industry group etc. 
  • Important events in company history, such as IPO Date, structural change in company and dividend dates. 
  • Quarterly Sales and earnings data . 
  • Take a key note of financial ratios such as Return on equity, Debt equity ratio, Earning per share and price to earnings ratio.  

Technical analysis Tool :  

Stock charts are one of the simplest and most important tools to analyse the stock. It mainly relates to the study of the past performance to predict the price in the future. It basically shows you the price of the stock in the upcoming future. With these tools, one can know whether, there will be a sharp rise or fall in the price of shares. In order to conduct proper analysis, an investor need to conduct proper stock chart analysis and able to find stock chart patterns. Your charts should have the following features :   

  • A proper lookout for the Daily, weekly, Monthly Intraday frames.  
  • Detailed analysis of price and annual movement, including the 50 and 200 average lines. 
  • The 200-day moving average is one of the most popular analysis tools, which is used by investors to get to know the price trend of a stock based on the 200-day moving average. This tool take into account average closing price of security in 200 days  

Industry group analysis Tool: 

An investor needs to identify the pot industry trends and know which specific groups are leading the cycle is vital for his stock selection. In any bull economy, certain industry will often be different from the one leading the bull market. It is critical to identify which industries have the benefit in the next bull market. Just as you would review the technical strengths of individual stock charts, the same analysis method can be done on a chart of the entire industry. 

In order to pick the best stock, one needs to keep checking the latest information in the market, latest trends and analyse those ideas and manage them all in one space.  

 

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