Regardless of what you do and how you use the tools, it will always be a forecast. An attempt to predict the future based on historical data and current events.
When are shares cheap? The course itself will not tell you whether these actions are cheap. You can tell by comparing the current course with value. If the value is higher than the current rate, you can say that the shares are cheap. This means that there is a chance of a long-term increase in the course (in fact, it’s just one of many signals, but about it in a moment). On the other hand, if the odds are three times greater than the value, then the action is overrated and for nowhere to go.
Diversification of your stock portfolio is a very important thing. Always try to have companies in different industries, different sizes, etc. Greater diversification of your portfolio reduces the risk of loss. If you are in a good business and you only have a small part of your capital, you will only earn on it. But as you know, there are no guarantees.
Selection. What you are going to show is not a system or a strategy. It is neither a recognized method nor an exceptional one. You will soon be working out your own way. What we are interested in is the selection of a dozen or more potential dozens of well-meaning companies, and only in this group to carry out a detailed analysis in search for signals to buy. Search the quotation tables of companies and select the ones that did not bring any losses for the past month. Then select those that are cheap (that is, the course is in the value area or lower). Now start a technical and / or fundamental analysis to find the best deals. Choose 1-2 for each part of your capital (diversification). To do the final stage, analysis – you will need knowledge. Fundamental analysis (knowledge of the company) and technical (graphs) are two key elements of the trading on the Exchange. Make the most of their time and training.