Your SlideShare is downloading. ×
How to Trade
Stocks
BY
WWW.PROFITABLETRADINGTIPS.COM
As the stock market rises in value new
investors and potential traders become
interested in how to trade stocks.

http://p...
How to trade stocks successfully is not just a
matter of acting on a stock tip from your
friend.

http://profitabletrading...
It is a matter of learning both fundamental as
well as technical analysis of stocks, market
sectors, and the market in gen...
How to trade stocks successfully starts with
learning the basic terms and then the skills
sets necessary to trade online.
...
Where the Money Is

http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
Stock traders make money buying low and
selling high or by shorting a stock and then
repurchasing it after it has fallen.
...
This approach has to do with bull and bear
markets, trends, trading channels, and
scalping in day trading.

http://profita...
First of all what are bull and bear markets?

http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
A bull market is one in which prices are
rising on an ongoing basis.

http://profitabletradingtips.com/profitable-tradingt...
A so called bear market is one in which
prices are falling.

http://profitabletradingtips.com/profitable-tradingtips/how-t...
Secular trend: lasts more than five years.
Primary trend: lasts for more than a year but
less than five.

Secondary trend:...
Understanding these terms is important for
successful stock trading.

http://profitabletradingtips.com/profitable-tradingt...
If you engage in range trading (repeatedly
buying at the bottom and selling at the top of
the market for a stock whose pri...
In a long term bull market the general range
will steadily head upwards causing you to
continually adjust the channel in w...
Anticipating when the market will turn
requires analysis of evolving market
sentiment.

http://profitabletradingtips.com/p...
The Moving Average
and Other Useful
Concepts
http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
It is all too easy to miss the forest for all of
the trees when trading stocks.

http://profitabletradingtips.com/profitab...
How to trade stocks successfully requires
that you maintain a sense of where the
general market is and where it is going.
...
When a stock has been climbing rapidly it is
all too easy to buy in hopes that it will just
keep going up.

http://profita...
Keep a sense about you as to what type of
trend this is and if the stock is nearing a
turning point or entering a new phas...
A useful concept in this regard is the moving
average.

http://profitabletradingtips.com/profitable-tradingtips/how-to-tra...
To determine the 52 week moving average
take a sum of the middle price for each day
of trading for each trading day for th...
Then divide this number by the number of
days of trading.

http://profitabletradingtips.com/profitable-tradingtips/how-to-...
Because this is a moving average you need
to calculate this for every day by removing
the earliest day and adding the prev...
Superimpose this average on the stock price
chart that you use.

http://profitabletradingtips.com/profitable-tradingtips/h...
When the current trading range lies above
the average consider the average line to be
a support level below which prices a...
When the current trading range lies below
the average consider this average to be a
resistance level above which the price...
How to trade stocks with the moving
average is to use this technical analysis
technique to help tap into market sentiment
...
How to Trade Stocks
Upcoming SlideShare
Loading in...5
×

How to Trade Stocks

5,198

Published on

How to Trade Stocks

http://profitabletradingtips.com/profitable-trading-tips/how-to-trade-stocks

As the stock market rises in value new investors and potential traders become interested in how to trade stocks. How to trade stocks successfully is not just a matter of acting on a stock tip from your friend. It is a matter of learning both fundamental as well as technical analysis of stocks, market sectors, and the market in general. How to trade stocks successfully starts with learning the basic terms and then the skills sets necessary to trade online.

Where the Money Is

Stock traders make money buying low and selling high or by shorting a stock and then repurchasing it after it has fallen. This approach has to do with bull and bear markets, trends, trading channels, and scalping in day trading. First of all what are bull and bear markets? A bull market is one in which prices are rising on an ongoing basis. A so called bear market is one in which prices are falling. These are market trends and not day to day price changes.

Secular trend: lasts more than five years.
Primary trend: lasts for more than a year but less than five.
Secondary trend: lasts for a few weeks or months but less than a year.

Understanding these terms is important for successful stock trading. If you engage in range trading (repeatedly buying at the bottom and selling at the top of the market for a stock whose price cycles up and down) you need to successfully anticipate when a stock will hit its peak and when it will bottom out and reverse course. In a long term bull market the general range will steadily head upwards causing you to continually adjust the channel in which you trade. Anticipating when the market will turn requires analysis of evolving market sentiment.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
5,198
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
27
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "How to Trade Stocks"

  1. 1. How to Trade Stocks BY WWW.PROFITABLETRADINGTIPS.COM
  2. 2. As the stock market rises in value new investors and potential traders become interested in how to trade stocks. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  3. 3. How to trade stocks successfully is not just a matter of acting on a stock tip from your friend. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  4. 4. It is a matter of learning both fundamental as well as technical analysis of stocks, market sectors, and the market in general. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  5. 5. How to trade stocks successfully starts with learning the basic terms and then the skills sets necessary to trade online. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  6. 6. Where the Money Is http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  7. 7. Stock traders make money buying low and selling high or by shorting a stock and then repurchasing it after it has fallen. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  8. 8. This approach has to do with bull and bear markets, trends, trading channels, and scalping in day trading. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  9. 9. First of all what are bull and bear markets? http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  10. 10. A bull market is one in which prices are rising on an ongoing basis. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  11. 11. A so called bear market is one in which prices are falling. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  12. 12. These are market trends and not day to day price changes. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  13. 13. Secular trend: lasts more than five years. Primary trend: lasts for more than a year but less than five. Secondary trend: lasts for a few weeks or months but less than a year. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  14. 14. Understanding these terms is important for successful stock trading. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  15. 15. If you engage in range trading (repeatedly buying at the bottom and selling at the top of the market for a stock whose price cycles up and down) you need to successfully anticipate when a stock will hit its peak and when it will bottom out and reverse course. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  16. 16. In a long term bull market the general range will steadily head upwards causing you to continually adjust the channel in which you trade. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  17. 17. Anticipating when the market will turn requires analysis of evolving market sentiment. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  18. 18. The Moving Average and Other Useful Concepts http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  19. 19. It is all too easy to miss the forest for all of the trees when trading stocks. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  20. 20. How to trade stocks successfully requires that you maintain a sense of where the general market is and where it is going. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  21. 21. When a stock has been climbing rapidly it is all too easy to buy in hopes that it will just keep going up. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  22. 22. Keep a sense about you as to what type of trend this is and if the stock is nearing a turning point or entering a new phase of increase. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  23. 23. A useful concept in this regard is the moving average. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  24. 24. To determine the 52 week moving average take a sum of the middle price for each day of trading for each trading day for the last fifty-two weeks. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  25. 25. Then divide this number by the number of days of trading. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  26. 26. Because this is a moving average you need to calculate this for every day by removing the earliest day and adding the previous day. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  27. 27. Superimpose this average on the stock price chart that you use. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  28. 28. When the current trading range lies above the average consider the average line to be a support level below which prices are unlikely to drop. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  29. 29. When the current trading range lies below the average consider this average to be a resistance level above which the price of the stock is unlikely to rise. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks
  30. 30. How to trade stocks with the moving average is to use this technical analysis technique to help tap into market sentiment and exploit market inefficiencies. http://profitabletradingtips.com/profitable-tradingtips/how-to-trade-stocks

×