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Introduction to candlesticks Candle Sticks analysis was developed by Japanese in 17th Century to trade rice. For a candlestick chart, the open, high, low and close are all required. A daily candlestick is based on the open price, the intraday high and low, and the close. candlestick charts have become quite popular in recent years because :  It is easy to understand  Provide earlier indications of market turns so it will help us to enter & exit the market with better timing.  Reading candle chart with other indicators give us a better understanding about the market condition. CONSTRUCTION OF CANDLE STICKS In order to create a candlestick chart, you must have a data set that contains open, high, low and close values for each time period you want to display. The hollow or filled portion of the candlestick is called "the body". The long thin lines above and below the body represent the high/low range and are called "shadows". If the close is lower than the open...

FUNDAMENTAL ANALYSIS AND TECHNICAL ANALYSIS BOTH ARE COMPLMENTRY OF EACH OTHER Fundamental analysis consider a corporation’s financial data where as technician analysis uses charts and study price movements and trading volumes to determine patterns. We should apply both fundamental & technical analysis together to make our investment / trading more successful. Fundamental analysis help us to find out the stock in which we invest & technical analysis tell us about the best time to enter into an undervalued stock. By improving our entry time, we increase our gain on investment. Fundamental analysis Fundamental analysis looks at financial & economic factors, known as fundamentals which may influence the viability of a company. fundamental analysis often looks at data over a number of years & takes a relatively long-term approach to analyzing the market compared to technical analysis. Fundamental analysis examines the financial statement, present capacity & future expan...

All successful people in stock market have some similar qualities so as a trader / investor we should know some thing about them also. Warren Buffet – The most successful investor. The thing Buffet hates the most is losing money. One time he went golfing with some friends in California. The group offered Buffet a bet: his $10 against their $20,000 that he couldn't score a hole in one over the next three days. He didn't agree to participate in the challenge. He told his friends that after careful consideration, he concluded that it wasn't a good bet for him. He mentioned that their offer is like a lottery ticket - a very small entry price and close to zero chance to win. If you let yourself be undisciplined on the small things, you'd probably be undisciplined on the large things too. Following are some very interesting aspects of his life from an interview on CNBC 1. He bought his first share at age 11 and he now regrets that he started too late! Things were very cheap...

As a beginner, you must understand two things – firstly never try to get rich in a day by doing over trading, Secondly trading is not a hobby but a very competitive business. So we have to control our emotions during trading & Also have some basic understanding about the terms used in Stock Market. Warren Buffett has suggested that every investor should be able to understand basic accountancy principles, an annual report and stock market history. You probably do not need to become an accountant, but being able to understand the scoring system of the game can only help. We must check some basic informations about the company before investing in it 1. P/E Ratio (Price-To-Earnings Ratio) :- P/E Ratio of a stock is a measure of the price paid for a share relative to the annual income or profit earned by the firm per share. A high P/E Ratio indicates that the share price is high relative to its current earning power. Possibly indicating that the stock is overvalued & a fall mi...