Stock Trading

What’s the technical tools/software you use to analyze KLSE stocks? Does it include ‘rules composer’, ’stock screener’ and ‘back tester’?

What’s the price for the software?

Metastock and Tradestation are supposed to be the best TA programs, but expensive.

I use Stockwiz for French stocks and end-of-day trading. It’s free. It comes with a stock screener and a rule wizard. I don’t use these any more as Stockwiz is completely programmable, and I programmed all my screens and rules. It also means one can backtest just about every system. The only drawback is that the programming language is somewhat primitive.
But it’s free and nowadays I can do everything I want with it.

http://www.stockwiz.com/

Caveat:
- You still need a service to get your daily stockquotes, which is most likely *not* free

I know there are two application used one being fundamental analysis and the other being Technical analysis. I want to know which is better.

Best is to combine the two. TA is much more subtle than you may think, which is why so many people say it does not work. What they mean when they say that is that they do not understand it. You can just as easily say that Russian does not work. But it works for Russians.

I’m afraid you can’t. There is a lot of evidence and research that has proved that over the short-term that stock market prices follow what is known as a random walk. In other words you can’t look at what they did yesterday to know what they will do today.
Over longer periods of time markets do move in patterns. The best evidence is that they are mean reverting, what this means is that stock marktes will spend time being overvalued or undervalued but in the long run will return to an average valuation. One way of measuring this is using the cyclically adjusted price earnings ratio devised by Yale Professor Robert Shiller.
There are a lot of people out there wanting to sell systems aimed at beating the market, but in the truth is if their systems were so good they would be making money trading instead of trying to sell you software.
The first question that you should always ask as an investor is; why do they want to sell this to me?

http://www.investopedia.com is a great site for basic learning. Also try http://www.stockcharts.com which has free charting and also some of the best in-depth explanations of technical indicators available on line in their "Chart School". Good luck and have fun!

search FAQ on net

visit my blog for ebooks on TA

get aptistock freeware

Don’t forget to publish your source please..!!
Thanks for your answer and opinion..!!
^^

Check company earnings, P/E ratio, Return on Equity, and other gauges. Those will drive the stock up or down.

I am 18 years old and I am really quite new to the financial markets although all the stories I’ve heard and read of success stories, I want to actually get down to the nuts & bolts of the financial markets and learn as much as I can about the stock market and how it works in terms of fundamental and technical analysis. What I would like to know is this:

Stock market fundamental analysis; What do I, or should I look for in companies listed on the stock market before I invest into them?

Stock market technical analysis; What should I look at before I invest into a stock after I’ve read and know what their fundamental analysis is in terms of;

1) stock trends; i.e. when to buy and sell. What should I be looking for here to determine weather to buy or sell a stock or not?

1) prices/ price movements

3) What else should I look at in technical analysis of stocks?

All help would be very much apprreciated thanks.

Fundamental analysis basically is determining the "intrinsic value" of a company’s stock. If there’s significant difference between its current value and intrinsic value, then that’s something you can profit from.

Valuing a stock is a very complicated subject, as you are basically guesstimating the future profit potential of a company. You can look up such terms on investopedia, but suffice to say that is worth a book in itself, so one or two paragraphs here can’t cover it all.

Technical analysis is a bit simpler, but you are basically guessing at how the market reacts to certain news, and look for "patterns" in the movement of prices and take advantage of THAT. There are supposed patterns based on Fibonacci, Gantt, as well as Japanese Candlestick charts, and much much more. This has plenty of books written for it as well.

What’s worse, no system works all the time. Most systems are lucky if they profit 75% of the time (most are like 60% of the time) and you’ll probably have to roll your own system.

Usually the best way is to combine the two: fundamental to pick the stock to buy, then technical to determine when to buy and sell. But you will have to read some books on this subject. People have spent decades on this and it’s not something you can "master", esp. not by a few paragraphs here.

I recommend you don’t learn either. Instead you should learn a few simple rules about trading.

See the following website:

http://commonsensetrading . googlepages . com

Stock momentum is measured with the application of indicators(sometimes also called momentum indicators) to the price volume charts of the selected stocks and as an adjunct to them.

The moving average indicators (whether simple, moving or exponential) can be applied directly to the price chart of the stock under study; while momentum indicators like the RSI, ROC, MACD and a 150 other such indicators are to be applied as adjuncts to the price volume charts.

The decision to buy, hold or sell a stock would depend on the interpretation of the appropriate signals ascertained from a study and analysis of the above mentioned charts.

As an investor you would probably appreciate that fundamental analysis would be of equal if not more importance with regard to not only stock selection but also the decisions pertaining to buying, holding or selling the same.

The cynics often refer to technical analysis as "windmills of the mind"; which is true to the extent of the lack of required knowledge on the part of the analysts and students of technical analysis.

Sincerely,

Akash

http://www.narachinvestment.com

http://www.narachphilosophy.com

http://www.narach.com

http://finance.narach.com

http://mobile.narachinvestment.com

The support level & resistance level if followed closely can help to pick up bright stock.

Its powerful because alot of traders subscribe to it. Lets face it the market is run by people not numbers. See what everyone else sees and you catch a good pick. I subscribe to the band wagon theory. However don’t ignore fundamentals. Try to find a good combo that works with your strategy.

One more thing, TA is more important to Day, Swing, and Pattern (Shortterm) Traders. However longterm investors still look at charts.