An Introduction to Technical Analysis in the stock market Part 2: http://www.slideshare.net/ImranAlmaleh/picking-stocks-in-the-market-pt2-31258541

1. P1
PICKING STOCKS IN THE MARKET
24
The analysis of securities
Made by: Imran Almaleh

2. INTRODUCTION

About the course

WHY INVEST?
Why the stock market?
 The stock market & The economy
 HOW CAN WE USE IT?


4. PART 1
agenda:
24
The 2 types of TRADERS
 The fundamental analysis
 The technical analysis
 The trading cycle
 The Market moves
 Trading psychology
 Basics of Analysis:






The Time-frame
The 3 green lights
Volume
Support & Resistance
Trend-lines

5. THE TYPES OF TRADERS

The sleeping man
Not a risk taker
 Stocks are not his primary concern


The active trader
Always alerted
 Deep analyzer
 Risk taker


6. THE SLEEPING MAN
SELL
80 SP
profit
BUY

7. 175sp overall profit
THE ACTIVE TRADER
SELL
SELL
110 sp
PROFIT
65 sp
PROFIT
BUY
BUY

8. THE IMPORTANCE OF FUNDAMENTALS
Get to know YOUR company
 Filtering stocks using fundamentals

ROA
 ROE
 E/P – D/P ratios
 Market value : Book value


Review report

Why not to use it in DSE?


Market efficiency
Market depth

9. ARBS
UG
AHT
NAMA
UIC
AROP
SPS
E/P
D/P
ROA
ROE
P/E ratio

10. TECHNICAL ANALYSIS
Supply & Demand
 The main concepts:


The Trend




Bull market
Side-way market
Bear market
The trading cycle

11. PRICE MOVES IN TRENDS!

12. THE TRADING CYCLE
Strong, Smart, and Dumb MONEY
 The marketing Model


14. THE MARKET MOVES

All Actions have Reactions

3 types of movements:
Main move
1.


Correction
2.


3.
Uptrend
Downtrend
33% of last move
66% of last move
Small moves

16. THE PSYCHOLOGY OF TRADING
Selling the Win fast
 Holding the Lose

GREAD AND FEAR
 Fear is stronger than Greed


THE EMOTIONAL CYCLE OF THE MARKET

17. THE EMOTIONS CYCLE
FEER
GREED
PANIC
HOPE
HOPE

18. THE BASICS OF ANALYSIS
The time frame
 The 3 Green lights to start
 The importance of VOLUME
 The support & resistance
 Trend lines


19. TIME FRAME

Short-term Trading
(Daily Trading)
 Between 5 minutes – 1 day


Mid-term Trading


Between 1 Week – 2 Months
Long-term Trading
(Investment)
 Between 6 Months – 2 Years or more


20. 3 GREEN LIGHTS
The stock market index
 The industry index
 The stock index


21. TRADING VOLUME
Why observe it?
 Selling pressure
 Divergence


22. SUPPORT & RESISTANCE
Concept
 Drawing the lines
 Converting the Support to Resistance & v.v.
 The strength of a Line


24. THE TREND LINE
Upward trend
 Downward trend
 Time frame & the trend lines
 How to draw a trend-line?
 Trend break-out
