There seems to be an unending interest around the place called stock market. With the lines of the stocks going up and down, your heart beats will also go haywire unless you have a real solid plan up your sleeves. Stock market is something that is full of tricks and people who get hold of it are the pros. Though it is never possible to predict the stock market correctly, one can at least grab the hold of the vibe to make it easier to predict the flow. There are quite a few things to understand about stocks. Technical analysis is something that helps to understand the tricky things about the stock market in a much better way.
Studying technical analysis simply means getting the hold of chart patterns, Candlestick patterns, Demand and Supply psychology, Support and Resistance and many other indicators. The difficult task of predicting stock market will become somewhat easier for the learner. The market is not only about the charts and indicators; it is also about sentiment which is actually based on human psychology. It is possible to grab hold of the future of the stock market with the help of technical analysis even without going through factors like commodity, currency and equity.
It is used by Forex traders, Equity traders and commodity traders all around the globe in order to predict the future of the stocks for both short-term and long-term. It has been helping investors to gain profits with proper predictions. This is why more and more people are showing interest to learn technical analysis for stock market (อ่านกราฟหุ้น, term in Thai).
No one knows where and when people are going to invest or sell stocks. The sentiments of people have a certain level of influence on the market. Understanding the psychology of traders and investors can help to predict their next steps. Technical analysis helps to understand this psychology in a better way.
Timely entry and exits
There is a right time for all the things in this world and it is applicable for the stock market as well. Entering the market at the right time and exiting it at the proper point is necessary to seal some profit. This right time can be predicted through technical analysis. Indicators like Elliot wave theory, Chart pattern and Candlestick patterns help to decide the correct time. With the help of technical analysis, it is easier to predict these trends and the entering and exiting time.
Decision making is one of the most important things in the world of stocks. Decisions are made depending on the predictions. These predictions can be made depending on the analysis. There are usually three trends- ranging market or sideways, up trend and down trend.
The trends of the stock market do not take long to reverse. It can happen at any point of time without any prior warning. This is where technical analysis comes. Analysis helps to predict the reversal of trend and make proper decision to minimize loss.