Over the past few weeks, I've seen some folks in our chat mention that they would like to learn more about the charting... ...

This discussion will be about recognizing PINCHER setups on the chart and how I identify and play them. The pincher... ...

When looking at a stock trading chart, the new stock trader can be forgiven for being confused. The technical stock trader on the other hand uses various technical analysis indicators and patterns to understand trading charts. It takes time for a new trader to understand these indicators but over time, it becomes simpler.

There are hundreds of technical indicators and new ones being created every day. Some of these are free and others are paid for. Since it is impossible for the technical analyst to know all indicators that have been created, one is advised to pick a few and use them for technical analysis. Some of the popular indicators that are used are described below.
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One of the biggest challenges that any investor has is trying to decide on a company to buy. Though we might wish to buy as many stocks as we want, we are limited by the amount of money we have. As such, we have to find fundamental analysis tools that will make the choice easier and more informed.

Having gone through financial statements like balance sheets, income statements and profit and loss statements and are satisfied with a number of companies, we need to come up with a way to compare them. For this, we use financial ratios.

Financial ratios are used to compare the risk and return of different firms to make intelligent investment decisions. Such decisions range from evaluating changes in performance over time to a comparison among all firms within a single industry at a point in time. Financial ratios are grouped into four categories:
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It is not true that penny stocks cost one penny to buy. Penny stocks or penny shares refer to shares that are speculative in nature because of their low value. There are different criteria used by financial analysts to define a stock as a penny stock. Some analysts use the market capitalisation of less than 100 million pounds while others use the price of a share from 50p to 3pounds as a definition of a penny share.
Whatever criteria an analyst uses to describe a penny stock, the bottom line is that these companies will have a small amount of net tangible assets and a very short history. Because of this, penny stocks are very speculative and volatile which makes them both exciting trading prospects or very risky.


If penny stocks are so risky, why would anyone trade in them? The main reason to trade in penny shares is the profits one can make.
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