1 0 Tag Archives: trading stocks
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A Basic Stock Trading Strategy For Beginners

So you want to trade stocks and make millions in the stock market. A simple idea and one that is most definitely real and possible. After all, so many people got rich trading stocks that its no wonder many aspiring millions turn to stocks. The reality however is that its not that simple and most novice investors get wiped out. It requires a mix of different skills plus a lot of experience and a mindset that is both optimistic and positive.

With countless courses, books and manuals its easier to trade now than ever before. The fact that you can do it online makes it perfect for virtually anyone. I suggest you don’t quit your day job yet and start spending your time learning. Its steep learning curve and one that you should not take lightly.

While you can read books till the cows come home you will probably be no further along your quest to make a fortune trading. You need to start by doing – its the best way to learn. One of the easiest and best trading strategies to start with is technical trading. Technical trading is all about graphs and trading based on trends and on chart patterns. The reason why this is so good is because it will expose you to all the aspects of making trades and even if you are not a financial genius it will allow you to use graphs as a visual aid to understand stocks and how the markets behave.

There are a number of excellent software packages that can help to make this even easier and most broker accounts will actually give you access to a trading platform. At first it can be intimidating but the important aspect is that you get your feet wet with real world trading experience.

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29. Dec, 2010
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Stock Charting for Stock Market Success

Stock charts are important tools that give useful information about different stocks over a particular time frame. The time frame may be, for example, daily, weekly, monthly or annually, depending upon two factors:

One, how long the trader or investor intends on holding his or her investment, and

Two, how frequently the trader or investor intends to make purchases and sales.

The availability and use of stock charts has been made very easy, as most online stock broker companies provide these free for their stock charting customers. To use stock charts effectively, you have to know what these charts are all about. Stock price illustrations give the market prices and reveal trends for different types of stock trading in the stock market. There are various types of stock charts, but the most commonly used are line charts, bar charts and candlestick charts.

Stock charting is the art of predicting various market trends and future price directions using charts. Being able to study charts for different time periods and to predict future trends in the market is a skill borne out of technical knowhow and experience. The use of charts to decipher market trends is known as technical analysis. Basically, stock charts are made up of data obtained from the current movement of price for different stocks in the stock market compared to an historic “lookback” period.

Line charts are made up of lines connected to dots and, combined with a few market indicators, can give you an idea of current market price trend. Line charts are simplified and do not give enough information to conclusively or correctly decipher directional trends. They may not run throughout a trading day and may fizzle out during the day.  Using line charts though is a starting point when trading stocks and most beginner stock traders adopt this chart to help them easily study the market.

Bar charts are more detailed than line charts and contain bars that show the current highs or lows of a stock. Bar charts help an analyst to decipher market trends and predict future outcomes. These depict price fluctuations and the bars contained may be coloured to show the rise and fall of share prices.

Candlestick charts are more detailed and contain bars in the form of candlesticks. There are different types of candlestick patterns that indicate different price fluctuations and movement which can be crucial to the future trends of a particular stock. Candlestick patterns are deemed as the most reliable chart patterns that a stock trader can use to indicate different market trends and future occurrences.

Stock charting is a skill that most experienced traders use to gain an edge over other traders. It is not an easy task to predict market outcomes just using charts. A lot of different indicators may be used alongside charts to come up with correct analyses on stock prices. Stock charts may be found on any stock brokering website and are given away by some stock brokers to potential investors for free. For beginners who wish to learn the art of stock charting, it is advisable to start with the use of line charts and gain more experience before using the more complicated candlestick charts.

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02. Oct, 2010