HOW TO TRADE WITH ALL TIME HIGH MARKETS/SHARES? AND IT ANALYTICAL TOOLS.

HOW TO TRADE WITH ALL TIME HIGH MARKETS/SHARES? (ELEMENTS TO WATCH THROUGH ANALYTICAL TOOLS)

We common Investors and Traders, many times  feel that we lost some money by not participating or not continuing our buying, particularly when market is going up and up / continuously growing.   But few people who are holding stocks feel to sell and some people try to wait and see with some more hope.  To our surprise many might not have questioned  themselves whether it is right or not?   Because the emotional attachment, many might have not evaluated the Market or Stocks.   Whenever this kind of situation, arises we have to get the answers to the following: which weight in Two categories ie. 1, Fundamentally 2. Technically. 

1. It the Market/Stock is Fairly Valued? or Bubbled? : Fair value means we have to check its EPS & PE, Comparative value to its peers, QOQ and YOY performance, Capitalisation against BV. etc.

Same time we have to check about its volumes, whether it is overbought, any volume breakout, short cover ages, arbitrage trading, price support and resistance levels etc.

2. Demand change should be watched;  is it because of enhanced valuations due to re-writing, re-rating, re-organisation, re-structuring through amalgamation or bifurcation, demand vs supply,  buy back options etc. 

3. Is price rise is New Driven? If so is it genuine? Is the Promoters announced is without any motives?  Is it by punters and operators? Is is by News makers and gossipers? Is it because of panic? Is it because of impulsive? Is it with Influence? Is it with higher expectations? etc.

4. We have to observe about Global Economical and Political conditions and influence along with our Mother Land, Govt. regulations, priorities etc.

ELEMENTS TO WATCH THROUGH ANALYTICAL TOOLS:

Fair value EPS & PE should be measured against: inflation % + GDP % and through corporation's financial statements.

Preference should be checked with: Peer Products or Markets

Over bought should be measure: against its PCR, Volumes Indicator and Cash Flow Indicators and by tracking average volumes.

Resistance Levels : should be drawn with Fibonacci Indicators and other Projection Indicators

News to be verify: through Exchanges and Respective Corporate Web sites.

Economy and Other News: We have to rely on reliable media or we have to subscribe news providers.

 
Who got only Predictions & Emotions may keeps people in front line whether to Gain or Lose.  Who have Analytical Capabilities gives Better Projections & Planning gives more Gaining Chances.  However, in Stock Market 100% may not possible, because Diversified Mob and Different Factors drive it.