| As in other fields, the internet revolution has created | | | | fundamental analyst is to locate the undervalued |
| the fierce competition amongst the share brokers. If | | | | shares and tender advice to buy them in anticipation |
| the broker takes regular and methodical steps to | | | | of appreciation of value. |
| educate the investor on topics that interest him | | | | Technical analysis views the actual history of trading |
| studying which one thinks that profits can be | | | | and the price of the share or index. |
| increased, that is the best service the broker can | | | | A chart is used for this purpose. A technical analyst |
| provide. The main participants in the stock exchange | | | | proceeds on the belief that securities move in trends. |
| are investors, market analysts, traders and other | | | | Such trends continue until something happens to |
| institutions concerned with investment business. Most | | | | change the trend. With this approach sometimes the |
| of them depend upon research and analysis to do | | | | analysis could be wrong and patterns and levels can |
| the trade, for which they create specialized cells. | | | | not be detected properly. But such an eventuality is |
| Transferring the research findings for the benefit of | | | | rare. In majority of the cases, the analysis is right. |
| the clients has become the important part of their | | | | Buying and selling activity affects the price of the |
| operations. | | | | traded shares. A trader has the reason either for |
| The vast amount of study material on shares | | | | buying or selling the share. Traders often act alone |
| available online, has thrown up a new class of | | | | but the weight of the numbers has a direct influence |
| research scholars who conduct research on the share | | | | on short term prices. They succeed in creating |
| market in their individual capacity. Research by such | | | | confusion and uncertainties in the minds of buyers or |
| individuals is likely to be without any bias. Stock | | | | sellers and their actions contribute to the upswings |
| Research education is available to the investors, with | | | | and downswings in the price of a share. |
| tools like charting software, books, service providers, | | | | This is the context where stock research education |
| training and a number of different research | | | | has the important role to play. With charts and |
| techniques. | | | | technical indicators you are able to study group |
| Any package of stock research education must | | | | behaviors and sentiments of the investors. This study |
| involve the following for the correct evaluation of the | | | | is considered both science and art. It is science, |
| intrinsic worth of the share: | | | | because scientific tools like mathematical formula, |
| Fundamental Analysis | | | | statistics and computers are used in the study. |
| Technical Analysis | | | | Stock research education helps one to determine the |
| Fundamental analysis contains the use of economic | | | | relative strength of buyers and sellers; judge the |
| and financial data to assess solvency, efficiency and | | | | mood of the market and determine the favorable |
| liquidity and the earning potential of the specified | | | | time to buy and sell the equities. To articulate the |
| company. For this analysis, the documents required | | | | theory how the price is expected to move and to |
| are the annual report and the relevant financial | | | | formulate a stop-loss strategy. The important |
| statements, legal observations by the corporate | | | | principle as for the technical analysis of stock market |
| officers, statistics related to the industry, market | | | | research is-history repeats itself and it happens so, |
| trends and the macro-economic data. The goal of the | | | | quite often. |