What you invest in is a matter of what your life goals expectations are but according to many people's
life experiences, the best thing you could devote your time and efforts are in your development. Yes,
you read that right, investing in yourself will pay huge dividends for you throughout your lifetime.
Improve your knowledge and understanding with Shibafin's academy and gain more confidence in your trades.
Your mindset is the most crucial tool you have without even realizing it. If you could discipline yourself enough to be persistent and not give up after the first challenge or failure you are more than halfway done. As we already said, your success depends only on you.
Every quarter, big companies announce their earnings which helps us to get a one-time volatility crush. At that moment most traders bet on a big move in either direction, but let's not forget about the short-term sale option, which sometimes could be the best way to go.
Entry and exit
The entry point in trading indicates the price at which the trader buys the asset.
And then the exit point is the price at which the trader closes a position.
Usually, a trader will sell to exit their trade.
Fundamental analysis simply said is a method for evaluating the assets' worth by examining related economic, financial, and other factors. Fundamental analysts use public data to evaluate the security's value, they study anything that can affect that value, including :
- Business model
- Operating industry
- Financial Statements
- Economical factors
The end goal of fundamental analysis is to produce a quantitative value that can be compared
with a security's current price, which indicates whether the security is undervalued or
The purpose is to identify fundamentally strong or weak companies and industries.
Fundamental analyses are mostly used to evaluate stocks, but traders can use them even for analyzing bond's values, by monitoring their interest rates and overall state of the economy.
The purpose of the technical analysis is to examine and predict the price movement of the
financial markets. It is based strictly on the price chart movements for an asset and uses
its previous values in an attempt to determine its future price.
They are two different approaches to this kind of analysis the top-down and bottom-up
The top-down approach uses gloabal economy analysis focusing on macro trends that they believe they will get the best opportunities. Then the sectors who would take advantage of those opportunities are being evaluated and induvidual stocks within this sectors are selected.
The bottom-up approach focuses on the analyzing individual stocks and companies. If you understand how the technical analysis works it would be a major key component for your trading career.
Still, traders should never foret that there is never a 100% garantee that a certain strategy and method will work for their benefit, the markets behavious could never be fully predictable.
Everyone needs to be able to create his strategy and use the best methods that would work for them.