The stock market and stocks are unpredictable. If there is nothing else that can be guaranteed about stocks, or the stock market, it can be guaranteed that there are no guarantees.
No amount of studying, training, or experience can make a human being, or a computer for that matter, consistently predict changes in the market or stocks. The stock market is essentially driven by human behavior and human emotion, both of which are largely unpredictable. One can anticipate, but cannot predict. Also, no one can predict world and economic events, or the human reactions to them. Similarly, corporate events and news can be inaccurate or intentionally misleading and therefore should not be trusted.
However, stocks and markets often continue in trends that can last weeks, months or sometimes even years. When placed on a price chart stocks, and the stock market, form identifiable patterns. This is mainly because humans react to patterns and actions in repeatable ways. For example, people often trade off of support or resistance levels or at new highs or lows, causing a buying or selling wave to occur at such areas. Similar behavior can be seen at round numbers, or at previous highs or lows as traders anticipate these actions and reactions.
By understanding where and when these waves will occur, we can greatly increase our odds of anticipating the moves in the market, and as such our probability for stock trading success. That is known as technical analysis of the stock market, and that will be the focus of this blog, Learning Technical Analysis.
Please hit the subscribe button on your right to stay updated to new posts, and you can sign up for our weekly email newsletter on the right as well. Thank you for reading, and happy trading!
1 comment:
We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
An important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.
Post a Comment