investment

How Are Charts Formed? There are different chart types. We will focus on the four most popular charting methods—line, bar, candlestick, and point & figure charts. Line Chart The closing level is more significant to certain traders and investors than the open, high, or low.You can disregard intraday fluctuations by  concentrating solely on the closing.…

Asset Allocation and Diversification What's the best way to minimize your risk while trading? We look at how asset allocation can be combined with technical analysis to ensure a strong…

Random Walk vs. Non-Random Walk Introduction The famous argument between random and non-random walkers is still going strong. These theories are best illustrated by two competing books. Burton Malkiel's 1973 book A Random Walk Down Wall Street is now considered a classic in the field of investment literature. Princeton economist Malkiel contends that investors cannot beat the main indices because price fluctuations are mostly random. Random Walk vs Non-Random Walk The counterargument is presented in the 2001 book A Non-Random Walk Down Wall Street, which was aptly titled by Andrew W. Lo and A. Craig MacKinlay. MacKinlay, a professor of finance at Wharton, and Lo, a professor of finance at MIT, contend that there are predictable components and that price swings are not entirely random. Now let's get the fight started! wanty to learn about technical Analysis in brief Random Walk Theory With…

General Steps to Fundamental Evaluation Even though there is no clear-cut method, a breakdown is presented below in the order an investor might proceed. This method employs a top-down approach…

Weaknesses of Technical Analysis Analyst Bias Technical analysis is subjective, and it may reflect our own prejudices, just like fundamental analysis does. Understanding these biases is crucial when examining a chart. The analysis will be overshadowed by a bullish bias if the analyst is an eternal bull. Alternatively, the study will likely be bearish if the analyst is a frustrated perma-bear. Learn in details about technical Analysis; here is our series about technical Analysis Open to Interpretation The fact that technical analysis is interpretable lends credence to the bias claim. Despite the existence of standards, it is common for two technicians to view the same chart and perceive two distinct scenarios or patterns. Both will be able to sustain their positions with logical arguments, levels of resistance, and significant breaks. Although this can be annoying, it should be noted that technical analysis, like economics, is more of an art than a science.…

Strengths of Technical Analysis Focus on Price It makes logical to concentrate on price swings if the goal is to forecast future prices. Fundamental developments are typically preceded by price  mswings .Technicians are automatically looking to the future when they concentrate on price action. The market typically outpaces the economy by six to nine months, making it a leading indicator. To stay ahead of the market, it makes sense to pay close attention to price movements. Usually, change is a kind of subtle beast. Hints often appear before big changes, despite the market's propensity for unexpected, impulsive reactions. times of accumulation indicate an imminent advance, whereas times of dispersal indicate an imminent collapse, according to a technician. Supply, Demand, and Price Action When examining a security's price activity, many technicians use the open, high, low, and close.Every bit of knowledge can be used to learn something. These won't be able to reveal anything on their own But when combined, the open, high, low, and close represent supply and demand pressures. Boeing Co. (BA) Technical…

Technical Analysis: General Steps Many technicians apply a top-down approach that begins with broad-based market analysis, then narrows down to specific sectors/industries, and ultimately analyzes individual stocks. Welcome to Part…