Conduct Technical Analysis to Avoid Risky Transactions

In this modern era, online trading has become so much popular. It is the latest method by which one can invest the surplus money in different securities. Online share trading is the procedure of buying and selling of securities at various stock exchanges with the help of brokers. Broker is an individual or a firm who acts on the behalf of buyer and helps in executing the whole transactional procedure. A sum of amount as commission is charged by the broker against the services provided. Trading of stock is based on current prices. The price varies from share to share. Sometimes, different prices are being charged by the buyers and sellers. Different types of rates are prevailing in the market such as:

1.Fixed rate: It is that rate which is fixed by the government and cannot be changed throughout the whole trading procedure. The rate will remain fixed. The transactions will take place on this fixed rate only.

2.Flexible rate: It is the rate which is determined on the basis of demand and supply forces for the securities. The rate is flexible in nature and can be adjusted as per the market requirements.

3.Current rate: It is the rate currently prevailing in the market. The current transactions of buying and selling takes place on this rate only.

4.Future rate: It is the rate at which future transactions will take place. The price is fixed at the current time but the transactions will take place in the future. The rate is fixed in advance.

As we have discussed different rates at which trading occurs. Now the next step is to conduct a proper analysis for measuring prices. We all are aware of the fact that trading is a risky procedure. Therefore in order to avoid uncertainties proper analysis must be organized. Technical analysis refers to a method of forecasting price with the help of chart time series. The method is specifically used for earning more profits in stock market. Basically, it helps in analyzing the value of assets in future courses. The method is…

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