Technical analysis will show the day to day charting or week to week charting of the share prices, and will help identify the share market tends to occur in patterns.
Let’s look at technical analysis a little closer. We have talked about, in previous articles, basically finding out the high and low price of the share, also a little bit about fundamental analysis on what the share does, what the company does and whether it makes a profit. It’s handy to know if it’s making a profit and whether it’s a blue chip company (a blue chip company being one of the larger companies on the share market). I always stick to blue chip Company, large company’s that are usually making a profit. That reduces your risk significantly. You can then look at the low and high prices for the previous twelve months to gain an indication of whether you are paying too much for the share or are getting it at a much better value and price. That eliminates a lot of risk to start with, not all the risk but a lot of it. You can also paper trade the shares in the beginning to build up your confidence, pretend to buy – and see how much you would make a paper. A good full service broker can also help with fundamental analysis, giving you information on current profit positions, etc., on a particular share
Author: Greg Dempsey – Investor/Marketer
Title: Blue Chip Company
www.OpulentWealth.com
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