The stock market and the stock market, the market but it is different from other markets, they do not display does not have in most cases the goods and commodities, but the goods that are traded by not real assets, but financial or financial assets papers, and often these stocks and bonds goods. And the stock market have a market for legal and technical rules of performance and controller how to choose a financial paper and the timing of disposition has invested irrational or non-qualified major loss exposed in the event of his purchase or sale of securities in the stock market because it was based on findings in the buying or selling to the wrong data or minutes or it underestimated the data.
Given the free atmosphere of competition in the stock market (stock market), that led in many cases to the operations of speculation severe the collapsed financial institutions and large companies, as happened in the Black Monday in New York Stock Exchange, or the black one Monday famous in Kuwait in 1983 when she was losses in climate Stock Exchange nearly $ 22 billion. February or disaster in the Saudi stock market, where the index lost 50% of its value as most Saudis traders lost 75% of their capital as well as Black Tuesday on 14/03/2006.
And referred to the level of the stock market, including the so-called points, and the points are counted for the loss and the rise of so-called closing market price per day.
Depends traders (dealers) are generally two approaches to stock selection, technical analysis, a method can check stock, according to the evolution of the price movements and historical price and using graphs to determine the timing of the disposition of the sense of when to buy a stock or sell it or keep it basic and analysis, an examination of the financial statements and that access to the real value of the shares so that helps fundamental analysis to identify stocks with the defect’s price any unquoted less or higher than their real value, and can not say that the conversion and Technical better than fundamental analysis Awaeks but the investor needs to analyze the primary to choose a good stock and needs analysis for Technical Help in determining the timing of the decision, and should be noted that supporters of Technical Analysis believe that they are more accurate and better as they Atenbaa the future, using the idea of history repeating itself, while considered fundamental analysis analysis of a minor for being based on past historical events. And changing the stock price in the stock market as a direct result of the change in presentation rates and the demand for this stock or that, in the case of the high demand for the purchase, the sales orders cheap will be carried out, and starts the most expensive running applications and starts with the price rise, and this is contrary to what is happening in the case of the demand for the sale.