Hi, everybody,
As I told you in my previous post https://peakd.com/hive-167922/@brocker/this-is-me-broker-or-trader
I am going to explain to you in general what a stock analysis is, what are the types of analysis, what are its functions, and which one is interesting for our cryptocurrency field.
The stock market analysis:
This concept combines a set of techniques whose objective is to formulate hypotheses about the functioning of the capital market or of a certain value of the same, serving as a basis for decision making.
We can say that there are three steps:
1.Preparing information about the company
2.Fundamental analysis
3.Technical analysis
Let's start with an example so as to explain it better:
Imagine you have some money saved up and you want to invest it in a company. What's the first step you have to take?
1- Search for historical information and relevant news about the company: country of origin, sector to which it belongs, countries in which it operates(this is very important because if you are dealing with an international company, for example, you will have to bear in mind the exchange rate risk), markets in which it is listed (if it is listed on different stock exchanges, it is an indicator that it has a high market capitalization, for example), relevant current news (because the value of the company and fluctuations in the stock market will depend on them).
2- Look for the information collected in the financial statements (if the company is listed, it has an obligation to publish it regularly), considering the last two published periods (2018 and 2019, for example). This data must be prepared in Excel in order to be able to calculate economic, financial, profitability and stock market ratios.
3- Collect information about the sector the company belongs to and about the market competing companies in order to compare it with the company you want to invest in.
In case you want to invest in cryptocurrency, you have to apply similar instructions but comparing data with cryptocurrencies, their historical information, their relevant news (For example: the purchase of Justin Sun from steemit and its merger with the TRON has generated a decrease in steem but an increase in the Hive that is the hard fork of steem)... and many other news that can affect the capitalization of the currency.
Photos are taken from:
https://qph.fs.quoracdn.net/main-qimg-298592b6d701208449531e5f4277874a
https://www.typesof.net/a/types-of-financial-statements-with-explanation
https://www.123rf.com/photo_106581697_stock-illustration-time-for-data-research-collect-information-clock-3d-illustration.html
http://www.ellipse-tronic.com/business-sectors/
In general these are the most important information we should have in order to start our analysis.
if you have any question please do not hesitate to write to me.
In the next article I will explain the next steps a broker has to follow to succeed in his job.
Kindly
@brocker
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You've got some good points my friend. This is going to my blog. Thanks
#WellDone #Rehive #Upvote