We cannot be a blind man in our stock trading (or stock investing) if want to do it in the right way and gain enough profit. Being blind man means that we do the stock trading just by using our feeling alone (or plus some rumors if available). Yeah, it mustn’t be done if do not want to do the meaningless stock trading – just to waste both or our money and time. Therefore, a stock trader/investor must know about Fundamental Analysis (FA) and (or) Technical Analysis (TA).
Stocks Analysis of BBRI Sept 19, 2011: Confirmed Bullish Harami, MA Resistance, Decreased Volume, and Crossed Up Stochastic
Of course, because of the Europe and USA financial crisis, it is very dangerous to do the stocks trading recently (despite how good our stocks analysis). The world-wide stocks market is in down trend currently so it is hard to make money from stocks recently. There are so many fears. However, as I mentioned before, if there is a fear, it is a time to collect the stocks since the price is very discounted. But, we need to be very careful since the fear may still strong and the price will go down further. We may catch the “falling knife” which will surely hurt us.
Stocks Analysis of ASRI Sept 12, 2011 : Symmetrical Triangles, Resistance, High Volume, and Uptrend Stochastic
Recently (and still), the worldwide stocks market is in hard moment since it is the strong down trend (bearish). It makes many of us occupy by the fear so we cannot make any good movement in stocks market and our portfolio decrease significantly. In this situation, many of us also cash the entire our portfolio and move to the heaven safe metal such as gold. However, as long as we do the stocks analysis (or stocks market analysis) diligently and honestly, I think we still can make money from the market. So, this time let’s utilize the old said: ”buy on fear and sell on the greed” .
As have mentioned before, Fundamental Analysis (FA) is used to know the real value of the stocks. It can help us to know whether the current stocks price is overvalued, normal-valued, or undervalued. The stocks’ real value is calculated based on the economy, industry, and company financial condition. In short word, the Fundamental Analysis tells us the stock’s fair value. We can use this fair value to decide whether to buy, sell, or just stay away from the stocks.
Yeah, it is true that in Fundamental Analysis: Company Financial Condition part I article, we have discussed about what and how to analyze the Company Financial Condition. However, it is only in general way so you may still not understand how to analyze Company Financial Condition in practical way. Therefore this time, let’s be more detail about how to do Company Financial Condition analysis so you can practically do the Stocks Analysis and find the best value of the stocks to be bought.
As mentioned in the previous Fundamental Analysis (FA) article, Company Financial Condition calculation is a micro analysis which is done after do the macro analysis (wider Economy Condition and Industry Condition calculation). The Company Financial Condition calculation is about how we analyze the company’s financial healthy. As for your information, this part is very important in the whole Fundamental Analysis (FA) since Stocks Market is all about prospect and expectation.