what is technical analysis

 

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technical analysis

To trade short term in the stock market, it is very important to know technical analysis, in which it is important to keep the following things in mind.

Which share should be bought or sold at what price, secondly how much will be the ricks, thirdly how much profit and loss can be fourth, how much can be the holding period of the share for long-term or for short-term.

Technical analysis is a tool that gives you the answers to the above questions, apart from this, you can get an idea on stocks and indices like nifty, Sensex, bank nifty, etc., when to enter the market and when to exit the market And knowing how much risk is there, you can also manage it.

Now we will know what is technical analysis.

what is technical analysis?

For example, you can understand that you have gone to China for a holiday, although you will know that Chinese language eating habits will be very difficult for you if you are visiting the capital city of Beijing, China. After going some distance ahead you have found some hotels and there you thought to eat food and you do not know where good food is available here.

You have two choices when it comes to finding good food.

 You will first go to the hotel and ask what you have in food and ask that you would also like to know the cooking method of what you are using in cooking and maybe you do a little check and then you will go or decide whether or whether the thing is worth eating or not. You'll be satisfied with what you're eating because you've tested yourself for what you eat.


The second way is that you go around and see which hotel people are reaching more to eat food, from this you can guess that good food must be available in that hotel, only then people are reaching in such numbers.

 There you can go and eat your favorite food, you will not be satisfied as much as you will eat after testing the food because maybe the food that that crowd likes, so you are reaching there and if you go then you will not like that food.

In this way, option two is better for technical analysis of the stock market. To identify the choice of most of the traders of the market, the graph chart of the stock or index is seen,

 after a few minutes, one becomes crazy and by looking at that button, you can understand the mood of the market. He understands the pattern and recognizes the mood of the market.

Some people come to the market because they think that a lot of money can be earned in the market with the help of technical analysis, but the truth is that there is neither a quick nor easy way to earn money through technical analysis.

Yes, or it may be that if you do technical analysis in a good way then good profit can be earned but for this, you have to learn to do hard work and technical analysis.

 If you want to make a lot of money through technical analysis that too in less time. So you can also face a big loss, so you have to be patient and learn technical analysis well, then slowly invest your money and earn profit.

1. Trade- You can use technical analysis in short term investment Fundamental analysis is good for long term investment because in short term it is very important to know when to enter the market and when to exit it is also necessary to have profit.


 2. Trade on Return- Make short-time trades through Technical Analysis Don't expect big profits in it To make profit in Technical Analysis you keep making small trades frequently and earn profit.


 3. Holding period - Do not trade more than a few minutes to a few weeks through technical analysis.


 4. Risk- You can identify the trade and if the trade goes wrong, then you may also suffer loss. Many times the trade trader does not exit the trade in the hope that the loss will turn into profit later, so trade only in the short term through technical analysis. 

Therefore, one should exit the deal keeping the loss to a minimum, and make a profit, after that new opportunities should be explored.

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