Understanding Stock Charts & Economic Indicators
Investing can seem complex, even overwhelming at times but stock charts are your best friend. I’ve been doing it for years, and it still baffles me sometimes! That said, there are some basic principles that you can follow to get started with investing in the stock market. This article will walk through how to invest like a pro using charts of stocks.
The first thing you need to understand is the difference between long-term and short-term investments. Long term investments are stocks that you intend to hold for months or years at a time. These typically pay dividends, which is money paid out by companies each quarter (four times per year). The price of these stocks will fluctuate based on current events.
Short term investing involves buying stock with the intent to sell within days or weeks. There isn’t usually much value in holding onto these types of stocks because they don’t tend to pay dividends like their long term counterparts do. They can be highly profitable if timed correctly though! I recommend using stop loss orders when trading so you know how much your investment stands to lose before selling it off too soon without making any profit.
When you’re looking at stocks, there are three main things to consider: the trend, support and resistance levels, and volume. The best way to determine which direction a stock is heading (up or down) is by looking at its chart over time on an online brokerage site like TD Ameritrade . These will typically have all of this information available for free! Stocks that continue moving up in value above their original purchase price are said to be experiencing uptrends. You want to buy into these types of investments if you believe they will go even higher before leveling out again with steady growth for months afterward!