Stock Trade Analysis

By Gilbert Stockton
One of the first things that anyone who does any serious investing does is look into stock trade analysis. For those that are just getting into stocks a stock trade analysis is the use of data from a number of sources that are used to create a graphic representation of the market. This can be done on both a small and large scale. For example, a large scale stock trade analysis may look at the trades done by a brokerage. A smaller scale analysis will be one done on the more personal level.
These can also be done on a particular stock or particular security and it is this type of analysis that is of the biggest interest to investors. The reason for this is that this type of analysis can tell an investor the price patterns and the trends that are attached to a particular stock. This is done through mathematical formulations and can so leading or lagging indicators.
Leading indicators are going to be the Williams%R, the stochastic, the RSI, and momentum. Lagging indicators are going to Moving average convergence/Divergence, the Chaiken Oscillator, the simple and exponential moving averages. There are also a number of theories that are used in analysis that provide a way to trace prices and patterns as well as trends that can help an investor determine if a security or stock is something to consider seriously for purchase or something to avoid. It may even let an investor know to hold off on purchase for a short period of time before purchasing.
Most of these stock trade analysis reports are going to focus on technical aspects and as a result look more to price movement and volume. It does not bring into account anything that might affect the market. The stock market is made up of numbers and no matter what affects the market externally it will be reflected in the numbers that are created from an analysis of the market. By focusing on the numbers that are created from the patterns and trends of the market it allows for a clear view of the market.
The same patterns and trends tend to repeat themselves over and over again within the market so by pulling out these patterns and trends an investor can use it to determine when the best time to purchase and sell would be based on the technical aspects of the trends. It is not however the only thing that should be looked at and should not be taken to be the end all of stock trade analysis. While the numbers can produce the patterns and show the trends it does not show the various aspects that affect that particular stock.
There are many ways to use the previous market data in order to predict the various trends and patterns that move the particular stock or market you are looking at. While this does not look at the actual data, which affects the market it, does show the numbers. From the data collected, it is possible to trace back to historical events and find out which types of events have the greatest impact on a particular stock or market and use that information in order to make wise investment choices.
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