a. The company’s financial statements

The financial statements will give you an insight into the company’s overall health. You need to look at the revenue, expenses, and profits to get an idea of where the company is heading. You can find this information in the annual report or on the website of the Securities and Exchange Commission (SEC).

b. The company’s products and services

You need to have a clear understanding of the products and services offered by the company. This will give you an idea of how much demand there is for their products and services. If there is high demand, then the prices of their assets will go up. On the other hand, if there is low demand, then prices will go down.

c. The industry trends

It’s important to stay up-to-date with industry trends. This way, you’ll know if the company is doing well or not. For example, if there is a new technology that everyone is using, then companies that are using this technology will see their stock prices go up. On the other hand, if there is a recession, then most companies will see their stock prices go down.

d. The political situation in different countries

You need to be aware of what’s going on in different countries around the world. Political unrest can cause asset prices to rise or fall sharply. For example, if there is a war going on in one country, then oil prices are likely to go up because that country might stop exporting oil. Similarly, if a country has new trade sanctions imposed on it, then its currency might depreciate sharply against other currencies.

e) Natural disasters

Natural disasters can also have a big impact on asset prices. For example, if there is a hurricane in the Gulf of Mexico, then oil prices are likely to go up because production will be disrupted. Similarly, if there is a drought in California, then food prices are likely to go up because agricultural production will be affected.

There are two ways to identify the right time to buy or sell:

a) Fundamental analysis

Fundamental analysis is all about looking at the underlying factors that affect asset prices. This mosly includes economic indicators, political factors, and wars. You need to have a solid understanding of how these factors impact asset prices. Failures are often made by fundamental analysts who don’t take into account all the underlying factors.

b) Technical analysis

Technical analysis is all about looking at past price movements to predict future price movements. This is done by using technical indicators such as moving averages, support and resistance levels, and Fibonacci levels. Technical analysts also use charts to identify patterns such as head and shoulders, triangles, and double tops/bottoms. You can use technical analysis to find the actual value of a security by :

i. Identifying the trend

The first step is to identify the overall trend. You can do this by using a moving average. A moving average is simply the average price of a security over a certain period of time. The most common time periods are 50 days, 100 days, and 200 days.

ii. Identifying support and resistance levels

Once you have identified the trend, you need to identify the support and resistance levels. These are simply the levels where the price is likely to find support or resistance.

iii. Identifying Fibonacci levels

Fibonacci levels are simply horizontal lines that are drawn at certain percentage points above and below a recent high or low. The most important Fibonacci levels are 23.6%, 38.2%, 50%, 61.8%, and 100%.

Here’s how to use stop-loss orders correctly:

• Set your stop-loss order at a level where there is likely to be strong support or resistance.
• Set your stop-loss order at a level where you are comfortable losing the money.

a) Set your stop-loss order at a level where the market is likely to reverse.

For example, if you bought shares of ABC company at $100 and you set your stop-loss order at $95, then you will sell your shares automatically if the price falls to $95. This will limit your losses to $5 per share. But if you set your stop-loss order at $90, then you will sell your shares automatically if the price falls to $90. This will limit your losses to $10 per share. So, it’s important that you set your stop-loss orders correctly in order to beat the market spread.

b) Another way is to use trailing stop losses.

A trailing stop is a type of stop loss order that adjusts to the changing price of a security. It “trails” the security’s price by a set percentage or dollar amount. For example, if you enter a short position in a stock at $10 and set a trailing stop loss at $11, your stop loss order will adjust to $9 if the stock price falls to $10. Trailing stop losses can be a wonder for your trading career if you use them correctly. They are not a silver bullet, but when used correctly, they can be a powerful weapon to defeat the market spread.