Monday, May 9, 2011

System Modified Error

How well invest in the stock

Nowadays a lot to write about technical analysis is often a bit dropping to second place fundamental analysis. This seems to be a bit wrong approach, at the end of technical analysis attempts to predict the future value of the company solely on the basis of past value of the share price. Currently
says a lot about technical analysis often forgetting about the fundamental analysis. This seems to be a bit wrong approach, because technical analysis attempts to predict the future value of the company only on the basis of past values \u200b\u200bof the share price. Investors assumes that if the share is currently in an uptrend it means that Enjoy a variety of buy it. Here is trying to exploit the principle that the trends and deviations tend to deepen. To a large extent this is true, the easiest way to compare this situation to remain the weather: for example, if the rains last week, and tomorrow it probably will not be sunny weather. Unfortunately, trends over time must end, or maybe fortunately - in the end would not change the trends, the stock market was not such profits, but their use is often more closely resembles the predictions of self-checks.
Probably many readers now wondering what is meant by self-checks of predictions. This works more or less on this principle:
has been formulated to assume that if the share price exceeds the level x, it will continue to grow exponentially. Many investors know this principle so waited for the price of x, after it reached a share investors are starting to buy it. At the beginning of taking the position quite carefully but it is enough to generate a greater demand for action. Investors point out that the assumption is beginning to prove, and increasingly open positions, which leads to even greater increases.
It is only here consider how stable can be the type of growth. Such situations often occur in worthless companies, and only a matter of time before re-fall in the value of such shares. To invest the long run it is worth considering the safety of our investment. For this purpose, we use the tools of fundamental analysis. In Poland, every company listed on the stock exchange is obliged to publish their financial statements . This allows fast and easy way we can see the company's financial condition, in which we invest. A more inquisitive look alert How to read financial statements .
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