I find the stories about the California Gold Rush era fascinating because at few other times across the course of human history, could a person of modest means potentially achieve great wealth. Though the quest for gold was not always easy for the 49ers, and not all of them achieved wealth, once they literally "staked their claims," each person had the same opportunity to achieve instant riches as the next. The Gold Rush was the great equalizer. Finding great stock trading opportunities is, in a way, like the 49ers' quest for gold, in that anybody-- whether young or old, rich or of modest means, male or female-- has a chance to create wealth for him or herself. But finding a shinny nugget at the bottom of your pan is one thing, while finding those select stocks that have the most explosive upside potential is quite another.
tock market analysis is the process of investigating and studying data on existing stocks and trying to predict how they will do in the stock market. This is used by most traders due to the fact that stock prices can change from moment to moment, but they normally have a pattern of either going up or down that can be analyzed and followed. Some investors use what is called technical analysis. This is mostly used to figure out the possible return the stock will provide its owners. When traders get tips on various stocks it is usually after this sort of analysis.
Multiple factors go into stock market analysis to see what sort of thing causes the prices to go up or down. Some of these factors include the business' background, the economy, historic trends, or even natural disasters like hurricanes or earthquakes. You can't use a system of stock market analysis over the long term, however, because it doesn't include any information on a business' future potential. But you can use it to keep track of the ups and downs of a particular stock.
Traders have multiple tools to use when it comes to financial market analysis. They can use well-developed patterns, or use what is called support and resistance. Support is when they track the level from which lower stock prices are predicted to go up from and resistance is the height the stock is predicted to get to before it may go down in price again. The theory is that most stocks can be predicted to rise or fall after they get to a support or resistance amount.
Of course, nothing is ever as simple as it seems at the outset, and quite frankly, the study of charts took me far deeper into technical analysis than I ever had intended to go. Yet somehow the quest for a more definitive way of knowing when to buy high-potential stocks had grabbed hold of me, and wouldn't let go until I had some hard and fast answers. I read every book on charting techniques I could lay my hands on. At night, armed with my charting software, I'd download a list of stocks and stare at their charts trying to discern what they were telling me. William O'Neil's "How To Make Money In Stocks" helped me to better understand the relationship between a stock's daily price action and its volume. Slowly, after what seemed an eternity, I began to spot the chart patterns.
I would like to warn you about the stock market media. The commentators are sharp but the overall look in the media is simply a reflection of crowd thinking. If the market is going up, the news presented is optimistic. If there is a stock market crash, no good news will appear. They seem to focus on the current trend but we, in our stock market trading, as a matter of stock market strategy, must anticipate. Yes, it is good to know what the current trend is but only because that is the platform, the starting point, from which you anticipate. If there is a stock market crash, you anticipate change, you anticipate the turning point. If there is a bubble, you anticipate the bursting of that bubble. So you have to know where you are now, but you are always looking where you are going in the future, then you can position yourself where you want to be. There is an overall trend in hedge fund and portfolio managers to trade the last three months of the market. If the market has been up, they want to buy. If the market has been down, they want to sell and go short. This is the way to go broke.
tock market analysis is the process of investigating and studying data on existing stocks and trying to predict how they will do in the stock market. This is used by most traders due to the fact that stock prices can change from moment to moment, but they normally have a pattern of either going up or down that can be analyzed and followed. Some investors use what is called technical analysis. This is mostly used to figure out the possible return the stock will provide its owners. When traders get tips on various stocks it is usually after this sort of analysis.
Multiple factors go into stock market analysis to see what sort of thing causes the prices to go up or down. Some of these factors include the business' background, the economy, historic trends, or even natural disasters like hurricanes or earthquakes. You can't use a system of stock market analysis over the long term, however, because it doesn't include any information on a business' future potential. But you can use it to keep track of the ups and downs of a particular stock.
Traders have multiple tools to use when it comes to financial market analysis. They can use well-developed patterns, or use what is called support and resistance. Support is when they track the level from which lower stock prices are predicted to go up from and resistance is the height the stock is predicted to get to before it may go down in price again. The theory is that most stocks can be predicted to rise or fall after they get to a support or resistance amount.
Of course, nothing is ever as simple as it seems at the outset, and quite frankly, the study of charts took me far deeper into technical analysis than I ever had intended to go. Yet somehow the quest for a more definitive way of knowing when to buy high-potential stocks had grabbed hold of me, and wouldn't let go until I had some hard and fast answers. I read every book on charting techniques I could lay my hands on. At night, armed with my charting software, I'd download a list of stocks and stare at their charts trying to discern what they were telling me. William O'Neil's "How To Make Money In Stocks" helped me to better understand the relationship between a stock's daily price action and its volume. Slowly, after what seemed an eternity, I began to spot the chart patterns.
I would like to warn you about the stock market media. The commentators are sharp but the overall look in the media is simply a reflection of crowd thinking. If the market is going up, the news presented is optimistic. If there is a stock market crash, no good news will appear. They seem to focus on the current trend but we, in our stock market trading, as a matter of stock market strategy, must anticipate. Yes, it is good to know what the current trend is but only because that is the platform, the starting point, from which you anticipate. If there is a stock market crash, you anticipate change, you anticipate the turning point. If there is a bubble, you anticipate the bursting of that bubble. So you have to know where you are now, but you are always looking where you are going in the future, then you can position yourself where you want to be. There is an overall trend in hedge fund and portfolio managers to trade the last three months of the market. If the market has been up, they want to buy. If the market has been down, they want to sell and go short. This is the way to go broke.
About the Author:
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: To Be Mr. And Mrs. Often You Need Wedding Loans You have full permission to reprint this article provided this box is kept unchanged.