Fibonacci Strategie to the Forex Trading

Without sensible strategy just the action with foreign currency is mostly successful only by chance. The best currency traders use as a rule at least one or several methods to generate permanently profits. One of these methods is the Fibonacci strategy. With her help trends can become and the optimum time for opening and closing a position be investigated.

1.      What are Fibonacci figures?

Fibonacci figures are already known since the antiquity, nevertheless, were called by as the most important mathematician of the Middle Ages, Leonardo there Pisa, Fibonacci, popularly. He described at the beginning of the 13th century with the numerical order the growth of a rabbit population and called them once more in the consciousness of the people. How much meaning is in this absolutely mythical-charged sequence, is still unclear. Nevertheless, fact is that it can be often found again in the nature and also is applicable on market prices.

2.      How Fibonacci figures determined?

The inquiry of Fibonacci figures is lighter than it may look at first sight. For the inquiry of the result are given for both first figures the value one. Afterwards two neighbouring figures are always added up.

The result is 1, 1, 2 (1+1), 3 (1+2), 5 (2 + 3), 8 (3 + 5), etc.

Besides, the quotients of two successive Fibonacci figures get closer, by the way, to the golden cut always. This is also relevant for the calculation of the most important figures for the Traden.

Since for the Fibonacci-Trading the relations of the figures are by far more interesting together. They are also called Fibonacci level. Relevant for the Trading with Fibonacci figures are above all the levels 0; 38.2%; 50%; 62.8% and 1. In isolated cases 23.6% and 76.4% can be also important.

They arise from the division of two successive figures. As already it is mentioned here sensibly to choose bigger figures the calculation, because the quotient approaches then to the optimum value.

If the Fibonacci number 144 is divided by her direct neighbour 89, arises rounded up 1,618. 89 partly by 144 proves 0,618 again. If 89 is divided by 233 what her next but one neighbour is after 144, arises 0,382.

These relations are used with the foreign exchange to be able to estimate movements.

Interestingly these figures agree by chance with the Gann figures which the successful trader used also constantly for his Chart analyses. Because Fibonacci level to most traders are known, it is usual just with currency trade that the Fibonacci strategy also proves to be true because many traders place as it were „on the same horse“.

3.      Bases for the Traden with Fibonacci figures

There lies the acceptance that the magnitude of a market movement is also dependent on the strength of the preceding movement. The reactions which stop in certain points (at times) are to be found with movements of a security or index strikingly often. These points are found in so-called opposition or Retracement lines.

If the platform of a Forex broker is able to mark Fibonacci-Retracements, this happens more than three horizontal trend lines which just indicate these opposition lines.

4.      Fibonacci signals recognise

Fibonacci signals are relatively easy to recognise, nevertheless, should never be pulled up as the only criterion for the decision of a Trades. It is substantially more sensibly to look in the area around the 50th and 61st line for promising entrance signals. This can be, for example, Candlestick formations like return sticks or Morningstar. Besides, as a rule of thumb is valid basically that positions are opened with the 50th Retracement line, and are closed with 38-%-Retracement again.

Also for the easy use with trend lines the Fibonacci strategy is suitable. Then she brags, for example, with an upward trend, when the right time has come to the entrance.

Above all Retracement lines are ordinarily used to find the right time for the entrance. With Fibonacci Extensions it is worked therefore particularly when it is about Short positions.

Basically are valid as a Retracementslevel: 0.236, 0.382, 0,500, 0.618, 0.764, while they

Pay 0, 0.382, 0.618, 1.000, 1.382, 1.618 to the extension levels are assigned.

Important tip: Fibonacci lines should be better seen than areas then as lines. Reason for the fact is that a big number provides in traders for the fact that the predictions with Fibonacci come true. Indeed, everybody does not use the same references. Above all the commitment the starting point and final point of the course maxima can vary. Besides, therefore inaccuracies and different definitions the level which are similar, besides, still clearly arise. Exceptions are officially announced Pivot points.

5.      Stop Loss with Fibonacci place

Just the putting of a Stopp-Loss is astonishingly easy with the Fibonacci strategy.

–         If an upward trend exists and a Long position is held, is a possibility to put the Stopp-Loss briefly under the last low-pressure area.

–         Besides, the limit should be never put directly on the Retracement lines. Otherwise the closing of the position is released, although the chances stand very good that the course moves afterwards in the opposite direction.

–         If a position is traded in the downward trend short, the usual action is by analogy with the upward trend. Here the limit should be briefly put about the last high-level point, because this one new opposition line could register.

Nevertheless, with the putting of these limits should be considered that, besides, the risk is mostly substantially higher than with other procedures. So these limits should be considered only if traders have recognised unequivocal patterns. The security by other analysis technologies should never be also neglected that's why. Moreover, it recommends to work the way up of course also here with dragged Stop-Loss.

6.      Mistakes avoid with the Fibonacci-Trading

Fibonacci figures are easy with the Trading to use. They are so popular that most Forex brokers allow the Chart analysis with Fibonacci figures and, besides, the bases are easy to understand. Already beginners learn to recognise fast, Retreatments and extensions. Still there is mistake which are made almost by every trader with the contact with Fibonacci figures and which are to be avoided easily.

1. Authoritative points mix

Authoritative points must distinguish themselves necessarily by consistency to be able to deliver a sensible result. If the authoritative point was so chosen, for example that he shows the lowest value of a trend within a candle body, then he must also remain there and be compared only by suitable dimensions. As soon as the authoritative points are mixed, wrong analyses and failures are the consequence. Candle bodies may be compared exclusively to candle bodies, highs and low-pressure areas also last only with each other in respect should be put.

Who pays attention to it, provides for the fact that the important auxiliary lines are marked perfectly and thus a quick and more reliable analysis becomes possible.

2. Long time trends never ignore

Even if the Fibonacci strategy on brief trends can be applied often successfully, besides, traders should never neglect long time trends. The analysis of the market movement for a longer period enables to recognise opportunities better and to be able to estimate the dynamism of the movement more reliably.

Who observes the long time trend, many mistakes can handle in the Vorhinein. Not seldom it is in such a way that for a short period after Fibonacci an excellent possibility seems to come up. Then in the long time trend becomes clear that this possibility is rather a "trap". With the action with Fibonacci figures is unconditional to pay attention to the consistency of long time trends and short-term development. Only if the analyses of both periods with the prediction of the market movement agree, should be also traded.

3. Use Fibonacci as the only reference

Fibonacci is a wonderful possibility to track down trends. Indeed, this method is also not infallible and cannot deliver, in the end, significantly better results than other Chartanalyse strategies. So it is indispensable to secure Fibonacci with other analysis possibilities.

As sensible supplements to the Fibonacci strategy are suited, for example, of the Stochastic Oscillator and MACD. Together they prove a substantially more reliable picture and raise the likelyhood to recognise good opportunities and to be able to be of use. Luck and chance play thus a substantially less strong role and wrong decisions become rarer.

4. None analyses to short periods with Fibonacci

Fibonacci becomes ineffective if the periods are chosen too briefly. Just with the Daytrading Volatilität plays a too big role, as that with Fibonacci strategies reliable statements can be met. The shorter the analysed period is, the more unreliable becomes the Fibonacci analysis.

With many charts this already, nevertheless, becomes quickly evident. Then the auxiliary lines show no clear picture and it is almost impossible to recognise a suitable time to the entrance. However, even if this is the case, traders should not be deceived. Rashes and Whipsaws are very frequent here and not foresee. To apply Fibonacci figures here is synonymous to follow no strategy and to order simply hit or miss.

Who follows these tips, will see quick how his use of the Fibonacci strategy becomes more successful. Who has applied the tactics up to now unsuccessfully, could have made the following mistakes:

–         Inaccuracies with the strategy too few attention given

As already said, Fibonacci functions often because many traders use this strategy without choosing always the same authoritative point. It is advisable, in any case to see the lines as a coarse recommendation and not as absolute values.

–         Blurred signals

To discover reliable signals, it is necessary to check them with other methods. Who is not sure, his risk about low position dimensions should minimise.

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Support & opposition strategy for Forex trader + broker

The Support and opposition strategy in the test:

In the foreign exchange the Trading of support areas and opposition plays an often applied method. A basis are, besides, opposition and support levels in the Chartmuster of the respective currency pairs or the generally traded values. As soon as the course one of the levels is evaluated this as a token for the demolition of a trend and a change of course linked with it. Special indicators are not required with this strategy. Instead, merely imaginary lines are marked in the respective opposition and support areas of the charts.

Advantages of the Support and opposition strategy:

• good definition of the Stop-Loss brands
• the Trading with opposition and support offers a good success rate

Disadvantages of the Support and opposition strategy:

• the take profit brands can be not always defined clearly

Use of the Support and opposition strategy

1. The Trading of support and opposition areas is possible for all values and time areas.
2. One speaks of a support area if the course reaches at least 2 times his low-pressure area without breaking through this. From the low-pressure areas a horizontal line is formed.
3. Have turned around opposition areas such areas to put the high touched without, besides, a new high with which the course 2 times or more often. The highs also form a horizontal line.
4. If the course for a certain period follows no trend it concerns a consolidation. In most cases it comes in this period to opposition areas with rather small Chartbalken.
5. If the course breaks through an opposition area, this is evaluated as a Long signal.
6. If the course breaks through a support area this is a Short signal.
7. With Short positions it is put of the Stop-Loss on the high of the last Candle before the breakthrough.
8. With Long positions it is put of the Stop-Loss on the low-pressure area of the last Candle before the breakthrough.

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Stochastic Oscillator and Moving ave rage strategy in combination

Stochastic Oscillator and Moving ave rage – the combined strategy:

Because with the combined strategy two commercial systems are combined, it is valid as relatively sure. The Moving ave rage indicator is used to the inquiry by longer-term trends. At the same time registers of the Stochastic Oscillator if the market is at short notice überkauft or überverkauft. In this manner traders can recognise short-term corrections and act accordingly.

Advantages of the Stochastic-Moving ave rage combo:

• very reliable system
• the trend is always traded

Disadvantages of the Stochastic-Moving ave rage combo:

• to apply relatively difficultly
• no unequivocal ones one and climbing out brands are defined

Use of the Stochastic-Moving ave rage combination

1. The strategy is suited for all currency pairs.
2. In the Tageschart D1 ave rage indicator the long-term trend is determined with the Moving.
3. For the Stochastic Oscillator indicator it is used of the Stundenchart H1.
4. Now indicators are added in the Tageschart 3 3 Moving ave rage and the periods are put on 50, 100 and 200.
5. In the Stundenchart indicator is added of the Stochastic Oscillator.
6. The %K period becomes sedate on "14", the %D period on "3" and the slowing down also on "3".
7. In the prize field "Close/Close" is selected.
8. In the following tab. the Überkauft level is put on 90 percent and the Überverkauft level on 10 percent.
9. If the Tageschart prices indicates above EMA50, EMA50 about EMA100 and EMA100 about EMA200 and the Stochastic Oscillator at the same time the Überverkauft level from below upwards crosses you go on Long.
10. The other way round, so if the Tageschart prices below EMA50, EMA50 under EMA100 and EMA100 under EMA200 and the Stochastic Oscillator the Überverkauft level crosses from above down you go on Short.
11. There are not exactly defined Stop-Loss or take profit brands with this strategy. A risk profit relation of 1:2 is recommendable.
12. Besides, a narrow Trailing stop is absolutely recommendable.

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Martingale Trading system – Trading strategies

The Martingale Trading system:

The basis of the Martingale Trading of commercial system forms a French quits system from the 18th century. Besides, the principle is relatively simple. If it comes to a loss the application is doubled with the next Trade. If it comes to a profit becomes the application as soon as the losses were made up again on the original level put back. Provided the trader disposes of sufficient resources this system is sure very much. Indeed, this is in practice only very seldom the case, which is why this strategy is not to be recommended rather. Though the system is recommended even by some experts, nevertheless, in the long term threatens the deletion of the account.

Advantages of the Martingale Trading system:

• theoretically very sure system

Disadvantages of the Martingale Trading system:

• in practice only seldom applicable
• mostly low profit / risk relation

Use of the Martingale Trading system

1. The Martingale Trading system is suited from the principle for all currency pairs and time windows.
2. First a normal position size is fixed
3. Any order with a firm Stop-Loss and the same take profit place.
4. Depending on on account of the Stop-Loss or the take profit is released, there is a profit or a loss.
5. If it comes to a profit the position size is put back again on the original value and the step 4 is repeated.
6. With a loss the step 4 is repeated with the double application.

Example of the effects of the Martingale Trading system

1. Accepted you trade the currency pair EUR/USD with a standard plumb line of 0.01 and begin with a credit of 10,000 euros.
2. They go for Long and put profit on 40 Pips to the Stop-Loss as well as the take.
3. The Stop-Loss is released and they suffer a loss of 40 Pips as 4 euros. Now their account balance amounts to 9.996 euros
4. Now the position size is doubled on 0.02 plumb lines and you go Short. Accepted now the take profit is released earn a profit of 8 euros and the account balance grows in 10.004 euros.
5. Now you put the position size again on the original value of 0.01 plumb lines and start once more.
6. With an original account balance of 10,000 euros you could lose with this system 11 Trades to the piece, until the account is extinguished. To double the account balance on 20,000 euros you would have to win 250 Trades.

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Inside bar strategy – strategy for brokers

The Inside bar strategy in detail:

Thanks to a rather high profit / loss of relation the Inside bar hears trade to strategy to the most popular commercial strategies in the Forex. The problem is present that there are in practice only rather seldom the suitable conditions on this strategy. They need no indicators for this strategy and can use them in the bar as well as in the Candlestick.

Advantages of the Inside bar strategy:

• clearly defined entrance points
• to apply simply
• good profit / loss relation

Disadvantages of the Inside bar strategy:

• there rule rather seldom the right conditions

Use of the Inside bar strategy

1. With an Inside bar it concerns a Chartbalken which fits including the High or Low points completely in the previous Chartbalken. Together both Chartbalken are also called container.
2. Accepted the topical prize beam is called with "1" and the previous beam with "2", then it concerns under the following conditions an Inside bar: High 1 <high 2 and Low 1> Low 2.
3. A Short position is marked by a bear's broad Inside bar which follows bullischen Chartbalken in a visible upward trend.
4. The reverse case signals a Long position.
5. With the Short positions it is put of the Stop-Loss on High of the container.
6. With the Short positions it is put of the Stop-Loss on the Low of the container.
7. The take profit is always put on the next opposition or support area.

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Carry Trade Strategie for Forex broker

Carry Trade Strategie – an overview:

If it is about the foreign exchange, Carry Trade Strategie belongs to the most popular strategies. Beside retail dealers this is in particular also applied by Hedgefonds. The system lies to buy a currency with a high interest rate and to sell at the same time a currency with low interest rate. Traders can thereby profit beside the course variations also from the interest which is achieved by the holds overnight. This functions of course only if the elective broker also pays interest for the holds of a position. Carry Trade Strategie should be applied only under normal conditions and not during a crisis or a longer-term correction.

Advantages of Carry Trade Strategie:

• Profits by course variations and interest
• Long-term profit potential

Disadvantages of Carry Trade Strategie:

•  Only with a growing economy successful-promissory

Use of Carry Trade Strategie:

1. First a currency pair with a relatively high interest rate is selected. Suitably for this are, for example, AUD/JPY, NZD/JPY and GBP/JPY.
2. Afterwards in the currency pair Long or Short go. The direction depends on whether a positive interest rate is granted for the holds.
3. To avoid a bigger loss at least on the paper a very moderate position size should be chosen.
4. Carry Trade Strategie belongs to few strategies with which no Stop-Loss should be put.
5. Now it is waited, until the position one enough profit is achieved or a crisis or correction is expected.

Example like Carry Trade Strategie can affect

Between end of 2000 and in the middle of 2006 the English pound had an interest rate of 5 percent. In the same period the interest rate of the Chinese yen went against 0. This caused with a hold of the positions overnight an interest rate of nearly 5 percent. With a lever from 1:100 an interest of about 2,500 percent arises for the whole period. In addition comes for the currency pair GBP/JPY in the same time an increase of 6500 Pips. Under these points of view Carry Trade Strategie for this period would have allowed huge profits.

Is not to be forgotten that Carry Trade Strategie contains a certain risk. In 2007 the upward trend was finished suddenly, so that only little time remained to close the concerning positions. Traders should be aware of the risk always and exactly consider whether you Carry Trade Strategie would like to apply.

Carry Trade Strategie test

To reduce the risk of Carry Trade Strategie it makes sense to test this to begin with thoroughly. Most brokers offer moreover a free demo account. Use our broker to comparison around the best Forex broker  for Carry Trade Strategie to find.

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Basic analysis with the Forex Trading

Basic analysis for trade with Forex and foreign currency:

In the basic analysis different economic indicators and political developments of a state or a certain currency area are examined. With the help of the results the chart development is explained and conclusions on the future development are met. The investigation and analysis of the course changes belongs to the duties of the basic analysis. Investors can make use of the data of the basic analysis and move with the help of these conclusions on the future chart development.

The interest rate development

The development of the interest within a currency space affects always also the foreign exchange market. If for example, the interest is abroad higher investors will put on her money particularly there. The inquiry for the respective currency thereby also automatically rises what leads to an increase of the courses. The other way round the home currency will rise on account of the higher inquiry.

Besides other data like foreign trade balance, inflation or the parity of the buying power also have an influence on the development of the foreign exchange rates. With the help of the foreign trade balance, for example, a comparison of the data is possible to the import and export. A high import leads to a stronger inquiry with the foreign currencies. As a countermove high exports load the courses of the exporting country and provide for a devaluation of the courses.

The inflation rate

Also with the help of the inflation rate conclusions on the development of the foreign exchange rates infuse themselves. If the inflation is by the home higher arise for the home producers a prize disadvantage. The goods become abroad cheaper by which the number of the imports increases. The inquiry for foreign currencies thereby increases again. If the inflation rate is against it compared with the foreign countries more slightly there rise the exports and own currency finds out a course increase.

The buying power parity

A buying power parity exists always then when the topical exchange rate and a certain amount in money, the purchase of the same goods allows like by the home. If consumers receive more goods for the same money supply abroad this leads to a rising inquiry for the concerning currency. This provides for an increase with the exchange rate what affects unfavorably the home currency.

The gross domestic product

With the help of the gross domestic product the achievements of a national economy can be measured especially extensively. The gross domestic product provides information about the number of the goods produced during one year and services. Most traders concentrate by her assessment upon two estimates which are published before announcement of the final GDP figures. If it comes between the first ones and the second estimate to considerable effects, this can lead to an important Volatilität.

Occupation indicators

With the help of the occupation indicators the general well-being of a national economy can be shown. Besides, important criteria are they pay of the created or diminished places as well as the population portion which is in work. Besides, for an assessment of the inflation it is important as fast the salaries rise.

Result of the basic analysis

For the appraisal of the foreseeable development on the Forex to markets can be pulled up a huge number of different indicators. Investors should take, in any case, the time and to deal extensively with these. It is important that they understand like themselves the indicators on the development of a national economy knead.

BASIC ANALYSIS VERSUS TECHNICAL ANALYSIS – part 2

Warren Buffett is the probably best known advocate of the basic analysis. The star investor whistles on short-term
Course movements and charts and makes his investments solely from the real value of a security
dependent – with overriding success. The classical basic analysis might be to most market participants to closest ones.

On the basis of economic data and the economical situation she tries to find an adequate price of a security. As a father of the basic analysis is valid Benjamin Graham who informed from 1928 to 1957 in Columbia University in which also Warren Buffett belonged to his schoolboys. After the study Buffett finished first one more education in the enterprise of his father, before him his former teacher Benjamin Graham got in 1954 as a security analyst in his enterprise of Graham-Newman and taught the principles of the basic analysis.

Advantages of the basic consideration

On the basis of balances and annual accounts different identification numbers are determined within the scope of the basic analysis, taking into account economic situation and market sphere it is tried to extrapolate these identification numbers in the form of a model calculation in the future. The course profit relation, the course turnover relation, the course book value relation, the company capital rate as well as the total capital yield belong to the most important identification numbers for the basic consideration of a security. With the help of these identification numbers different securities can be compared with each other and favourably valued titles be filtered out. The short-term external influence which leads to rejections in the stock markets is completely faded out. Basically oriented investors assume from the fact that the at-the-market of a security approaches sooner or later always to his fair value.

Weaknesses of the basic analysis

However, really the course of a security can also deviate for a longer period from his intrinsic value, emotions and irrational behaviour of the market participants with play on the stock exchange beside basic identification numbers, nevertheless, also always in. Hence, investment capital can be blocked unexpectedly long what can provoke, in the end, nevertheless, emotionally reasonable commercial decisions. Also in the complexity of the basic analysis there lies one of her biggest weaknesses. Well-intentioned advice like „Keep it simple“ may not mislead about the fact that for an exact economic consideration of a security numerous identification numbers must be determined in time-consuming work. Accordingly small is the number in securities which singles can observe, which is why analysts concentrate as a rule also upon a certain market or a certain branch.

Enough data are not always also available to the investor for a basic analysis.

Result

The technical analysis as well as the basic analysis has her strengths and her weaknesses which step according to market situation and investment period differently strongly to the prelight. Hence, investors should think to themselves in the approach of an order intensely about the investment aim. In practice a combination of both strategies might bring mostly the biggest success. Since what is quite promising as a basically undervalued security which delivers just a technical purchase signal …

Basic analysis: Overview about the identification numbers

An investment is very good to consider not to put his money in the wrong shares. So that investors receive a good directive for the share arrangement, must be paid attention to the fact that the basic analysis is used for the other recognition of enterprise data. By the use of the data is protected that a good investment decision is made. With the help of the basic analysis the identification numbers can be analysed by enterprise to make better decisions. However, to begin with the figures should be looked a little closer, so that is known, where from the identification numbers come, actually, and which meaning they have.

What is the basic analysis?

In the basic analysis it concerns an analysis kind to estimate enterprise and to fix her true value. The values can be analysed on the basis of figures directly to receive a fair value. If this value is according to the value which is traded topically to the enterprise on the stock exchange, it concerns the true value. If the calculated fair value of a company above the topical market value lies, means in the basic analysis that the shares of the enterprise should be bought. The low value is also understood as an underestimation, which is why the direct investment will affect positively. If the fair value is higher, however, the basic analysis advises to sell own shares of the enterprise. In the analysis of an enterprise different factors are consulted to determine the true value. Typical analysis values consist of three analysis kinds. It concerns the global analysis, the branch analysis and the enterprise analysis.

The global analysis for the first appraisal

So that the basic analysis can be correctly carried out, it is begun at the beginning with the global analysis. On this occasion, the economic basic conditions of an enterprise are taken under the magnifying glass. The economic activity are analysed beside international and national factors. Of course the economic development is very important in this regard and plays a crucial role. A factor which influences this development is the interest rate policy and the money supply policy which is pursued by the central banks. If lower interest exists, shares can look absolutely attractive. Also the liquidity of an enterprise pays off as a rule positively on the commercial ability of the companies which is to be followed. In addition, the global analysis uses other identification numbers which is necessary for the analysis. Belong to it:

• Exchange rate quotations
• Inflation level
• Price trends in raw material markets
• Price trend of the consumer goods
• Investment programmes by the government

After the global analysis was completely provided, now should be looked itself around in the branch sphere. Here it is to be controlled and to analyse as the enterprise behaves in comparison to other companies., Among the rest, special aspects are closer, on this occasion, in view of the economic situation to look.

Branch analysis

The branch analysis is the second step which is important in the basic analysis. The branch sphere is a very important indicator which is to be followed by the share purchase., Among the rest, the whole economic situation should be looked closer to clear therefore the degree of the dependence of the enterprise. It should be appeared in this connection the following questions:

• Which competitors have does the well-chosen enterprise?
• Which shares of the market does the enterprise with a competitor have in common?
• Which supplier is specified in the same department?
• How many enterprises are in the same niche area?
• Which products speed up the market topically?

These and similar questions should put to themselves the professional people who deal with the analysis procedure. The Hinterfragung of the branch is very important to be able to clear which is enterprises topically the number one and therefore the market leader. The other enterprises who produce better economic results with themselves should be examined, in addition. A change of the commercial models of the enterprises can bring an important clue with itself and would mean that also at the well-chosen enterprise a change of the identification numbers is possible in the future.

The analysis of political decisions on the well-chosen branch should not be forgotten. Changes of laws is clear in many branches to recognise, because the political decisions can affect some enterprises. A clear Veränderug with itself can bring for some enterprises the changes in the tax law and other enterprises are not concerned by the changed laws at all. It can be even the case that enterprises are asked to compensate for her nuclear power stations zurückzubauen or the use of green stream according to the renewable energy law. Particularly the use of renewable energy can force back an enterprise in his development strongly what would mean that the analysis would show clear changes. The branch of the energy providers is concerned particularly by this fact. However, the pharmaceutical industry is untouched from this law. In the analysis the basic factors must be looked more directly to be able to recognise direct disadvantages at first sight before an investment. In addition, the other indicators which are important for the well-chosen branch should be incorporated. Stocks, figures of the incoming orders can analyse the inquiry and the offer closer. The calculated indexes as well as the Gfk-buyer demand index belong to the figures which may fall by no means under the table. Only on this way the sure forecasts which brings to light clarity about the branch can be put.

Enterprise analysis are of use as a reflexion

Another factor in the basic analysis shows the enterprise analysis, de is divided into areas of Quality and quantity. This kind of the analysis should make sure that also figures are used for the basic analysis which are not very clear, otherwise, or are led even officially. The speech is by the qualitative assessment the use of subjective criteria which are to be grasped not easily. Must undertake basically not only a good commercial model show, but on the other side show a diverse Produktaufreihung. The products should moulder and be efficient enough, so that the customers depend on this. In addition, the enterprise should dispose of a high-class management team and can use this to be able to introduce a lot of experience in the enterprise. In this case the assessment is important for the future prospect and should be underestimated by no means.

However, with the quantitative analysis kind the assessment of the enterprise is carried out in view of the enterprise balance. Figures for the analysis are necessary to create a high-quality basis of comparison. Basically there are the numerous identification numbers which should be briefly mentioned:

• Course profit relation (KGV)
• EBIT, EBITDA, annual profit
• Cash Flow
• Quality of the management
• Small Caps versus Generous Caps

In the other analysis of the identification numbers direct turnovers of an enterprise are analysed, so that the turnover can be named most exactly. It must be to be noted of course that the whole economy of an enterprise should be led as additional factors in the analysis to be able to name amounts in detail. The relation between market value of the shares are to be called as other clues.

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