Stock/ share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
fundamental analysis uses revenues, earnings, future growth, return on equity, profit margins, and other data to determine a company’s underlying value and potential for future growth.
Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. Technical analysis is based on demand and supply, which can be derived from traded Price and Volume.
It is better not to react according to the news published in the newspaper. These news are outdated while publishing. These news will pass on through different hands before publishing. Investors for that particular stock will be already there in the market. The retailer is the last person to get the news. So it is better to go with the market.
Small investors should avoid penny stocks and value traps that can lead to losses in the stock market. Since the market cap is low, they are easily manipulated by operators who lure unsuspecting investors and dump worthless shares on them.
There are three types of charts 1. Line charts 2. Bar charts and 3. Candle stick charts