Basic Knowledge of Stock Analysis (1)

The stock market has the characteristics of both high profitability and high risk, appropriate stock analysis is constructive to improving profits, so how much do you know about stock analysis? From the technical point of view, we can naturally sum up a lot of reasons for the failures of shareholders. Just from the perspective of human nature, and with the method of psychological analysis, let’s see how the general stock investors in the stock market will encounter the fate of failure.

The basic analysis mainly analyzes the small environment of the company. The change of the big environment is good material to talk about, but it’s not practical for stock speculation. It is necessary to study the operation of the company in the small environment. With my own experiences, if I only rely on the trend chart to speculate stocks, and do not know what the company is doing and how it is doing, my heart is uneasy.

What factors do you think cause investors to enter the market to buy stocks? Wall Street has investigated that the main reason for average investors to buy stocks is that the stocks are rising rather than having a low cost-benefit ratio or high dividends! Similarly, the main reason that investors sell stocks is because the stocks are falling! It's falling! Keep in mind that when all people on the streets talk about how easy it is for the stock market can make money, the market is often at or near its peak. Everyone has put money into the stock market, and the driving force for the stock market to continue or to rise has dried up. And when the public is afraid, all that should be sold has been sold, and the decline of stocks is not much worse.