How to analyze instruments traded on the stock market? To answer this question, it is necessary to know both technical and fundamental analysis methods. Technical analysis is a method that tries to predict future trends by examining the price movements of instruments with the help of charts and indicators. Fundamental analysis, on the other hand, is a method that takes into account economic, political and social factors to determine the true value of vehicles. It is possible to be successful in the stock market by using these two methods together.
To do technical analysis, it is first necessary to choose a strategy or develop a trading system. According to this strategy, it is determined which instruments, in which time frame, with which indicators and according to which rules to trade. Then, elements such as market trends, support-resistance levels, formations and candlesticks are examined to identify securities. Finding the right broker is also important. It is necessary to pay attention to criteria such as the quality of service offered by the brokerage house, commission rates, trading platform and customer support. It is also essential to be disciplined and patient to monitor and monitor transactions. Risk management using take profit and stop loss orders, making decisions based on data rather than emotions, and being open to continuous learning are the success elements of technical analysis. Using additional software or tools can also facilitate technical analysis. For example, tools such as graphics programs, signal providers, robots or educational resources can be used.
In order to make fundamental analysis, many values such as global conditions, national economy analysis, industry analysis and firm analysis should be considered. Global conditions should be followed to understand the impact of political and economic developments in the world on the stock market. Country economy analysis is done to evaluate the reflections of macroeconomic data, central bank policies, budget deficit and current account balance on the stock market. Industry analysis is done to measure the performance and competitiveness of the sectors to which the listed instruments belong. Firm analysis is done to examine companies' financial statements, profitability rates, growth potentials and market values. As a result of these analyzes, the real value of the stock is revealed and a stock interpretation is made.
We tried to give brief information about how the instruments traded on the stock exchange are analyzed. Those who want to learn more about this subject can do research on the internet or benefit from the services of intermediary institutions that provide stock market education. Thus, they can evaluate their savings by making successful investments in the stock market.