You would currently see many sites providing the stock market analysis and related trend information these days. Its easy to watch the video and learn from them but when you would start actually buying a share, you would definitely come up with a question that how the hell I would know which company I should pick for analysis and trading.

Answer is very simple, select the share or equity which has highest number of the quantity traded in
last month. Why is that so? Because when you see traders placing orders, everyone wants the profit. So when a share is traded, someone earn profit and someone will lose the profit. The group of persons who earns profit, would like to see the share price to go down again and hence they would place tiny orders of share in low price to accumulate the share price. On the other side, the group of people who have lost profit will buy more shares in tiny orders to raise the price of the share. This way there is always a tug-of-war between buyer and sellers or in stock market world we call them as bulls and bears
Ultimately, you would see such shares falling into high number of trades. Hence you can pick up any share that was traded recently in high quantity (around millions) and go for analysis to further study and purchase the share.
Hope this was useful.
source: Stockexchangeyard.com

Leave a Reply

Your email address will not be published. Required fields are marked *

error

Enjoy this blog? Please spread the word :)