We are used to hear about the stock markets, however, what are the stock markets? where they come from? when did they start?....The stock exchange is the place where you can trade companies assets, and other financial products. It started in a building where some mechants and rich families decided the most important trading operations. This building was property of the Van der Bürse in Belguim.
When investing in financial markets is always important to establish pattern of behavior, a plan to follow in ordert to take firm steps. It is therefore crucial to establish objective, a goal to which we are going. In investment strategies, these objectives must be achievable, it is important to see this objectives as future doors that will open new posibilities. Having a goal in mind, can establish an action plan by which to reach it.
Many investors, especially small investors, are more comfortable to operate in markets at times when the stock market is in an upward movement. Optimism and positive projection are often greatly influence in decision-making, and that is why it is also important to identify whether we are in a general bullish trend.
Again we will analyze the main indicators to identify and meet the overall situation in the markets. We must clarify that we are analyzing the global economic situation. For decision making at the entrance or exit of a specific asset, is necessary to analyze that security price and not just based on the analysis of global indicators.
Is technical analysisi a foolproof method? Of course not, but it can help in decision-making. With the necessary preparation, making proper use of indicators and knowing how to interpret the signals that the market is leaving behind, we can be more prepared for an important events.
Technical analysis suggests the study of the stock markets based solely on the security prices and the historical quotes of each asset. With this methodologies, the trader does not consider rumors, news or events of economic impact during the analysis. While studing the market you can not predict what will be the circunstances of the world...Will there be a war?...Terrorism?...However, we can study the response of the human behaviour to positive or negative events. Market movements comes from pulses of people, people who feel emotions, and to a single event, those emotions cause the price movement in the market. Studing this, you can find patterns in the behaviour of the stocks.