Business and Finance

Technical Analysis Of Investment

In principle, investing in shares is actually for the long term even though the majority of capital market players are for the short term or commonly referred to as the stock trading strategy. It would be very risky if we invest in the short term. Because investment results that you do not necessarily make on an issuer can profit by the target price and the estimated period that you planned at the beginning. That is why you also need to follow the investment reporter newsletter.

Another key so that the risk of long-term stock investment can be minimized is to buy gradually. A minimum stock investor must also know about technical analysis. For example regarding the support and resistance points. The support point is a certain level or price area that can be believed to be the lowest point in a period, you can compare it with the lowest data for example from three months back or see from an annual basis. Whereas resistance is the point where the price touches the highest area in a certain period, this resistance area is usually characterized by large-scale investors selling action to prevent prices from moving up. Generally, when this resistance area occurs the stock price will tend to fall to find a support point (lowest point).

As an investor in addition to your obligation to fundamentally analyze an issuer in shares (companies), no less important is that you also have to participate in analyzing the condition of the sectors and sub-sectors of the company that we want to invest in. Because one of the factors that causes a good stock price performance or not can also be influenced by the condition of the company sector. For example, what happened in the coal sector, a few years back until now the sector is still depressed due to the drop in coal prices. This condition has an impact on coal company stock prices where the price performance is not so aggressive.

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