How to Read Stock Charts Like a Broker
During these challenging economic times, people are trying to figure out ways to make extra money. One way to do so is to start getting involved in the stock market. If you're new to the stock market, you'll have to first learn how to read stock charts. Stock charts give you all the information you need to make buying and selling decisions that will earn profits for you. The following is some information about stock charts you can use if you want to start checking out the stock market and investing in it.
What is a Stock Chart?
A stock chart is a neatly formatted informational sheet that gives you information on how a company's stocks perform overall. Learning how to read stock charts is the key to understanding when you should take certain actions regarding a company you're interested in. The stock chart provides useful metrics so that you can see whether you want to invest in a certain company or pass due to non-performance. Every stock market broker knows how to read stock charts quite well.
How to Read Stock Charts Like a Broker
You will need to learn how to read stock charts if you're interested in being a player in the stock market. You can learn it for your own personal ventures, or you can learn it so that you can help others. Stockbrokers help other people make trading decisions that benefit them financially. You may want to start a career as a stockbroker one day. Learning how to read stock charts will put you one step closer to reaching that goal. You can get the basics down in a relatively short time period. Then you can build on your knowledge a little bit at a time.
Breakdown of a Stock Page
A stock page is an information page on a company's stock. It has several elements in it. These are some of the components you'll find on the page:
Ticker Symbol
The ticker symbol is a symbol that identifies a certain stock. The symbol usually consists of three or four letters. For example, Aflac's ticker symbol is AFL. You'll usually see this in a chart column labeled "ticker."
52-Week High and Low
The 52-week high and low is a metric you'll want to look at if you're considering purchasing stock from a certain company. It tells you the highest and lowest trading prices for stock within that period. It will give you an idea of whether the stock performed well or not and whether you can expect to see it rise in the future.
Dividend Per Share
The dividend per share figure shows you how much a particular company paid out to its shareholders during a specific year. Not all companies pay out dividends, but the information will be in the chart for those who do.
Dividend Yield
The dividend yield is the percent of return that you will receive on that dividend. The experts calculate this figure by dividing the yearly dividend by the price of the current stock.
Day High and Low
The day high and low is a figure that tells you the highest and lowest prices a particular stock traded for that day. This information might be useful to you when making crucial decisions.
Opening Price
The opening price is the price at which the stock was at when the market first opened for the day.
Closing Price
The closing price is the price the stock was at when the trading day ended. This information might be a little bit more useful to you than the opening information is.
Previous Close Price
You may also find some information about the previous day's activity. The previous close price is the price a stock ended at during the previous trading period.
Net Change
The net change is the difference in stock prices from the close of one day to the close of the next day. You will usually see these numbers in red or green with an up or down arrow. A green upward signal means that the stock value increased. The red downward signal means that the stock value decreased. It's as simple as that.
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How to Read a Stock Chart
Knowing how to read stock charts is a little different from knowing how to read a stock page. A stock chart is a sophisticated informational sheet with plot lines. Those plotlines are there to show you how the price moved over a specific timeframe. You may want to see how stocks move over a six-month period, for example. You can use a basic chart that shows think lines, or you can use an advanced or interactive chart once you become more familiar with reading the charts. These are some tips for reading the chart:
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Look for the Price and Time Axes
The first things you need to identify are the price and time axis. The time axis is usually horizontal, and it stretches out to cover a certain time period. You can customize it for a short one-day period or a long one-year period or more. The price axis is usually vertical, and it indicates the stock prices. You'll need those two axes to plot your trend lines, which you'll find about next.
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Review the Trend Line
If you're new to the stock market, you'll probably want to use a line chart to analyze your trend line. You have the option of using bar charts and candlestick charts, but they might be more difficult to understand at first. A line chart will give you straightforward information that's easy to understand.
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Find the Trading Volume
You'll probably see the trading volume at the bottom of the stock chart. You'll need to look for spikes in the volume. Those spikes in the volume can indicate key times when you should make a move.
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Look for Support and Resistance Lines
Examining the support and resistance is something else you'll need to do to make your trading life easier. The support line signifies a certain price that the stock never goes below. The resistance line is a price that the stock never rises above. You can use this information to strategize your movements.
Contact Us for More Support
Now you should know how to read stock charts so that you can get more involved in buying and selling stocks. Giving you this information delighted us very much. Please feel free to reach out to us if you need any more information regarding the stock market. We are always available to help our visitors to gain clarity and additional information. You may also want to consider signing up to use our new app. We wanted to make it easier for our visitors to find the products and services they need. Therefore, we created a tool called the Goalry Mall.
Sign up For the Goalry Mall
Now it's time for you to visit the Goalry Mall and sign up to use it to your advantage. The good news is that it only takes a few minutes to do. Stop by and request a member key so that you'll have access to every store in the mall. Once you get your key, you'll go wherever you like to find specialists, educational materials, and access to a network of reputable lenders. Good luck, and remember that we're here for you whenever you need us.
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