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Learning the methodology of stock trading – Basic concepts

Stock trading is systematic method of screening and evaluating stocks, determining the amount of risk that is or should be taken, and formulating short and long-term investment objectives. A successful trading plan will also involve details like the type of trading system to be used. Most plans require the use of various types of technical analysis tools. Based on our technical and fundamental analysis, we can decide our entry/exit/target levels.Entry levels are calculated using various price/volume, breakout strategies etc., stoploss and targets are set based on “Risk vs Reward Ratio” by analysing the support and resistance areas.

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