How to Analyst of Stock Exchange ?
In stock investing, investors are often faced with several questions related to the stock price, such as what factors affect stock prices? Then a fair price for a stock?
Answer is certainly not easy, because many factors influence stock prices, consist of all related to the market and could affect the price. Since there are many factors that could affect stock prices, by themselves when the stock rises and when the stock drops could not be determined precisely. Most investors are not only able to predict stock prices. Prediction based on the trend (trend), that his lunch is the historical performance of stock price movement. And again uncertain factors correctly.
Because of the difficulty of predicting stock prices, investors are expected to do about the stock analyst. Stock analysis is needed because an investor in the stock investment is always confronted with the market. Inevitably result investors should understand the risks involved “brought” the market even more often the case in market conditions can not be explained economically.
In the context of stock trading, while shares in long-term expectations to rise, then perhaps the market expectations stocks declined. Hence for an equity investor who needs to understand that stock investment is a long term investment, while the share price made the creation of markets is the price for the time during the market place. Because of the complexity of the market predicts that, like it or not to invest more confident investors. Investors need to understand the analysis about the stock.
As the name implies intended analysis was to see the trend of stock prices most likely, possibility. Therefore to analyze this stock investor knows in advance the fundamental aspects of these shares. Fundamental aspects of the stock of which related to financial performance, corporate industries, including income and sales company structure. In addition to conducting fundamental approach, investors can also make the approach in analyzing the stock through a technical approach. Analyze the stock price based on fundamental and technical approach is the analysis of capital that many investors do in predicting stock prices in Indonesia Stock Exchange.
Fundamental Analysis
Fundamental analysis is an analysis based on body corporate financial indicators and analyze the economic factors in general. For company financial information, particularly related to corporate performance, such as sales volume, assets, profits, and so forth. While associated with the economy in general is to include economic growth, inflation data and so forth.
Some of popular formula in fundamental analysis, among others: Price Earning Ratio (PER), and Price Book Value (the P / BV), and Corporate Cash Flow ratio (cash flow per share). There is no definitive standard to determine how PER P / BV, and Cash Flow Ratio a decent company. But analysts had been looking at a company’s stock is said to cheap PER ranged from 10 to 15 times, certainly when it was under his PER could be said even cheaper. But there are times when the PER is also an industry average companies are in the range of 40 times and the PER of a company that will go public at around 20 times by itself is said to be 20 times cheaper. So be very expensive and relatively cheap, depending on market conditions. If the market is bearish probably 15 times considered PER expensive, but if the bullish market PER 20 might say cheap. In terms of P / BV, the company’s stock is cheap to say the maximum average of about 2 to 4 times, while from the side of the Cash Flow Ratio company said the share price quite fair if ranging from three to six times.
Fundamental analysis aims to answer the question whether the price of a stock cheap or expensive. So if the stock price is very cheap so investors can make decisions to buy these shares, save it and wait for prices to rise.
Meanwhile, for technical analysis, stock prices as a reflection of the behavior of all investors. Could fundamentally, these shares should rise, but because of all the investors do the selling price by itself would be corrected. In more concrete that this analysis assumes that the stock price is influenced by supply and demand factors, so that stock prices can move up and down. In this technical analyst investors are sometimes assisted by a graph, and data released by the Indonesian Stock Exchange. From the data graphs and charts that, investors can understand the “trend” in stock prices. This method holds that stock prices are influenced by a cycle of fashion trends or specific. For example, at the end of year stock price tends to fall, because many investors who sell their shares for Long Holiday or Christmas celebrations.
This technical analysis is very useful to know when (timing) time to buy and sell stocks. For that related to timing, investors have many options strategies that can be applied, for example, can make purchases when prices come down, and selling when prices start rising. Again and again when the right time to implement it is not easy, hence the investors’ strategy to sell shares when the share price to its highest price. For example like this, when the highest price in the price of Rp 10,000 in the last month, and the stock fell to its lowest level Rp9.750 (investors purchased) so that the stock was approaching its highest level (for example, there is in the range US $ 9900-9950), investor already started to sell these shares. Steps to sell before the stock reached its highest price it because in most cases stock will be returned to its highest level so stagnant.
Stagnation occurs because the price has become a habit when stock prices reach the highest level, there will be a so-called Resistance levels, namely circumstances where selling interest is higher than the purchase interest resulting price goes back down. The opposite of this resistance level is the level of support that is a situation where interest in buying interest will be greater than the selling price so close to its lowest level.
Tags: economy, investor, stock exchange