Basic Knowledge of Stock Analysis

Feb 18, 2024 By Edward Weston

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.




The knowledge of analyzing the rise and fall of stocks and why they rise and fall can be roughly divided into two categories:


A: Fundamental analysis


B: Technical analysis


Technical analysis studies the relationship among stock price, time and trading volume, it is also graphic analysis. Others belong to the category of basic analysis. Don't separate the two kinds of analysis completely, they are actually related. Among stock price, trading volume and time we see in technical analysis actually reflects investors' views on the operation of the company. They used their own money to vote for the future of the company. Another important knowledge closely related to stock speculation is how to determine the stock market, that is, the general trend of the stock market. In order to succeed in stock speculation, the ability of judging the market is essential. A bull or bear market is a big market. The rise of a big market is called a bull market, and the fall of a big market is called a bear market.


Basic analysts believe that: for the long-term, the price of the stock depends on the company's fixed assets and profitability. Therefore, any factors affecting fixed assets and profitability are within the scope of basic analysis. There are so many of these factors. Here I will list some of them and explain their impact on the stock price. I divide them into two categories: big environment and small environment. Big environment refers to the factors outside the company, and small environment refers to the factors inside the company. In addition, we will analyze the three factors that are most likely to lead to the rise of stock price.

No Reservations
What is a Collision Loss Damage waiver?
In the case of leasing any car from any car rental company, one individual can acquire affixed insurance known as Collision Damage Waiver.

Oct 31, 2023 Susan Kelly

6 Factors To Consider When Comparing 529 Plans
529 plans are tax-advantaged accounts that can be used to pay educational expenses from kindergarten through graduate school.1 There are two basic 529 plans: educational savings and prepaid tuition. 529 plans are sponsored and run by the 50 states and the District of Columbia. The rules and fees of 529 plans can differ by state. 529 plans can be purchased directly from a state, broker, or financial advisor.

Oct 13, 2023 Triston Martin

Incremental Cash Flow: What You Need To Know?
A great number of businesses will, at some point in time, be compelled to choose how they will financially support particular initiatives. The acceptance of a new project or the investment in a new asset could potentially enhance or decrease a company's cash flow. This is known as incremental cash flow.

Dec 11, 2023 Susan Kelly

Geico Auto Insurance Review 2023: Get To Know Everything
Geico consistently ranks among the lowest in the country in terms of auto insurance rates. Compared to other transportation providers, this business often offers drivers lower rates.

Nov 06, 2023 Susan Kelly

All About Unlevered Beta
Stocks of companies with a high debt-to-equity ratio tend to be more volatile than those with a lower ratio. If the Beta is 1, then the stock is just as hazardous as the market as a whole; if it's more or lower than 1, then the stock's risk is higher or lower than average, accordingly.

Dec 16, 2023 Triston Martin

Five Economically Stable Countries That Are Ideal for Retire Overseas
You are not exempt from paying income tax if you receive retirement income such as Social Security payments or other retirement income, even if you reside in a foreign nation. Consider a conversation with a tax expert regarding the financial repercussions of retiring in another tax.

Dec 23, 2023 Triston Martin