We all know share prices go up and down every day. But it’s only by using charts that you can keep those fluctuations in perspective and understand whether it’s time to buy, sell or hold.
“Fortunes are made every year by people who learn to properly read stock charts.”
Learning how to read stock on charts seem intimidating to me at first. But with basic tips from successful stock traders and a little practice on my own, I started spotting stocks that were oversold and ripe for appreciation as well as stocks to avoid because they have appreciated so much and due for reversals. With this understanding, I can now spot winning stocks, see how to buy them, set a modest profit target and know when to sell.
Stock Chart Reading For Beginners: Why Use Charts?
The first thing to understand about charts is that they tell you a story.
- Is the stock being heavily bought by mutual fund managers and other large investors? Or are these so-called institutional investors dumping shares as fast as they can?
- Is the stock finding a floor of support from which it can keep climbing higher? Or does it keep bumping its head against a ceiling of resistance?
You can literally “see” that story as it unfolds once you learn how to interpret the price, volume action and some of my vetted technical tools. By the end of this series, you’ll be able to do just that.
The second thing to understand about charts is that if you don’t use them, you’re essentially investing with a blindfold. You won’t be able to see what’s really happening with the stock. This is what you need to navigate news-driven, volatile and uncertain markets.
An investor who doesn’t use stock charts is the same as an orthopaedic doctor who doesn’t use X-rays or a cardiologist who doesn’t hook up patients to an EKG machine.
Doctors use these tools to spot patterns and anomalies and to make a proper diagnosis. Savvy investors use charts for essentially the same reason. They help you understand the true health of a stock, and to spot timely buy and sell signals.
If you are wondering whether Cadbury, Oando, Access, MTN, GTBank, Okomu, AIICO, Mansard, FirstBank, Dangote Cement or any other listed stock is a buy or sell, buy this video course and get answers to this burning questions.
Why you should always read stock chart
This session lets you understand why reading chart is a must for anyone looking to perfect his/her trading skill online.