A-Z Guide on Reading Stock Charts
Understanding how to read stock charts as a beginner is one of the most basic functions of a stock market investor. You will never make money if you can’t learn to recognize when is a good time to buy and a good time to sell stocks in companies.
There are a few important concepts to know as well as a few particularly easy stock patterns to keep an eye out for in the charts.
This video discusses price channels, support and resistance, and head and shoulders patterns. You will see these patterns appear on stock charts dozens of times a day throughout different markets and with different companies stocks.
The video also explains how to read candlestick charts, one of the most useful ways to view a chart today. The candlestick charts are packed full of data that can help a beginning stock trader understand what they need to do in order to make the best investing decisions possible.
Does it make sense for the average investor to follow these patterns and to buy low, sell high? There's trends, for sure, but how good are we at predicting them? Is it better to buy and hold for a longer period of time (3+ years)?
It is generally a lot easier to buy and hold for longer periods because generally the stock market goes up over time so it makes it easy to make money. But trends work on larger time frames too. All these patterns play out over the years as well. So you technically could use them for longer term holds on stocks like 3days +
On average the Sp500 returns 7% a year but ofc depending on if you hold the sp500 or one stock you could get wildly different returns. The stock market on average always goes up but you can pick stocks that go down so sometimes its harder to just pick stocks instead of buying into the stock market as a whole.
Thanks for the nice video! However, I'm thinking about 2 main things:1) If we are following a certain stock trend, let us say the channel one, and we buy low, it's then impossible to predict if the channel will brake at that exactly low? If so,,is it possible to combine other chart methods with the channel one, to predict where will the channel brake? 2) Are some methods more suitable to the short term trade and others for the medium/long term, or we may use them in whatever time scale?
You don't know the channel is going to hold but its more likely spot for the stock the bottom then picking a random spot to buy. Also if you are buying at the bottom of the channel the amount you are going to potentially lose is small because you would close your position if it breaks the channel generating you a small loss. But if the channel holds and it goes back up to the top of the channel you will have a big winner. So small losses and big wins.
"YOU CAN BUY HERE AND THEN SELL HERE .. AND THEN YOU CAN BUY HERE AND THEN SELL HERE .. AND THEN YOU BUY HERE AND THEN SELL HERE .. AND THAT WOULD BE PRETTY GOOD PROFITS..." WOW!! GREAT ADVICE!! BUY LOW & SELL HIGH?!? WOW!!! U R AMAZNG!!
I really thought the blended model strategy was just another hype, but after two weeks trying thees method on my trade by Dmitry vladislav, i can finally brag that i use one of the best trend following strategy in history. i learnt these method without stress so i recommend it to every trader.
Im sorry but the candlestick part was a little hard to follow. Wouldve been better if the cursor moved along with you over the part you were speaking about. How can you read the price of stock at the opening bell and differentiate that from the price at the closing bell by just looking at a vertical bar??
I really thought the blended model strategy was just another hype, but after two weeks trying these method on my trade by Dmitry vladislav, i can finally brag that i use one of the best trend following strategy in history. i learnt these method without stress.
Thanks for the video helped a lot, now I have a question for literally anyone who knows this please. So i'm turning 18 in like a month and I have an app on my phone that lets me trade on the stock. Now I'm just starting out so I'm not looking for anything serious I just wanna learn the way around it so I wanna do kind of short term stuff and I'm just curious if that's even possible? All the videos and stuff I've learned are talking about 5-20 year plans of stocks and I understand that's mostly what this is but I'm wondering if there's graphs that show things hourly and if I can do things that way? I know I won't make as much money and that's not really what I'm concerned with at the moment, but can I do this and whats the range of money I'll be looking at. Will I only be making a few dollars a day or even just a few cents? Or is this just non realistic?
But isn't bitcoin a risky investment said to fail? Please enlighten with your experience im just hearing about bitcoin and don't know much about it which is why i want to hear others experience with it..
Mimic Memes Look into crypto currency such as Bitcoin and Ethereum. I put $100 into Bitcoin when it went way down, then a couple days later it shot back up and my $100 was then worth $130. Same thing for Ethereum, I put in $30 when it was pretty low, and a week later it’s now worth $38.
I can't believe there are such things as patterns. This makes things ten times easier to understand. So the purpose of identifying patterns is to figure out when should a trader get in or out of a trade right? My big question is why do stocks fall at a certain point and then go back up again? For example, Apple's stock price went down to 285 and then it went to 300, then back down to 285, and went back up. How come it does not go past 285 when things are going bad?
I am new to trading, but so far, I don't trust channels. As far as I can tell, there is no way to tell when they will end. Concerning support and resistance, it's the same thing. They can go away as soon as they are identifiable. These things are like tornadoes.
Most of the time it will do all the math for you and you will see no change in the chart. For example if the stock split in half, so there was twice as much stock, the price would automatically be adjusted for splits. So the price previous to the split would be cut in half to show the price the shares would have been if there were as many shares as there were today.
SOme noob questions. How often do the prices change during a day. So buy them as cheap as possible with the hope that they shoot up, and sell them as high before they drop? is this the name of the game? IM playing a stock simmulator game and it moves very slow...
Hey Daniel, you have exactly the right idea. The price changes thousands of times a day. So some people will buy and sell within just a few minutes, pocketing a smaller profit, while others will buy and hold for years and pocket a larger profit. We post new videos monthly so feel free to subscribe :)
In a time of increasing change and uncertainty, we must be clear on what will not change to not get distracted.
Strategic Portfolio Management.
1. Periodic evaluation and prioritization of the entire innovation portfolio.
2. Strategic and priority-based resource allocation.
On a strategic level, portfolio and resource management must be fully aligned.
3. Release and exit of innovation initiatives.
About the authors.
Dr. Ralph-Christian Ohr has been working in several innovation, division and product management functions for international, technology-based companies. His interest is aimed at organizational and personal capabilities for high innovation performance. He authors the Integrative Innovation Blog.
The Biggest Mistakes in Managing a Portfolio.
The Biggest Mistakes in Financial Planning Series.
by Harvey Jacobson, CHFC, MBA, CLU.
Investors who have remained consistent with their risk profiles through volatile markets have seen a substantial recovery in their portfolios since March 2009. Those who are truly behind are those who panicked and are now left with the decision of how to recover their losses. They can, but it is a much slower recovery.
This article published originally April 13, 2010, Los Angeles Daily News.
Managing an agile portfolio.
When the right people on the right teams have the right context, they naturally do the right thing.
Set the right context.