The funda of investing & trading in stock markets
Stock market investing or trading is no rocket science and anyone with some basic knowledge and experience can invest or trade in a stock market.
Apr 23, 2017 09:04 IST India Infoline News Service

Fundamental Analysis: This is an analysis of the financial performance of the company based on certain financial parameters such as growth in sales, operating and net profits, gross and net margins, return on equity capital employed (ROCE) and return on net worth (RoNW), leverage ratio (DER), earnings per share (EPS), prospects of the industry in which the company is operating and its market share in the overall industry, track record of the management, dividend history, and so on. These parameters provide an overview of the financial health and the growth prospects of the company.
Technical Analysis: This is an analysis of the movement of share price of the company over a period of time. The technical parameters provide an indication to the trader about when and at what price level to enter a share (take a long/short position) and when to exit or close the position. There are many technical indicators which a trader uses to determine his entry or exit from the stock. Some of the technical indicators include support and resistance levels, overbought or oversold zones, simple moving average (SMA), exponential moving average (EMA), relative strength index (RSI), breakout levels, and many more.
The common attribute for being a successful investor and trader is doing the homework right.