Every Noob Trader Must Know About These Tips of Stock Market
March 24, 2018
- Keep in mind the importance of volume. Here, volume is the actual number of shares traded by a stock.
- In the past stocks have never gone up by an accident. There is always a reason behind it. Large buying from big investors could be a possible reason behind a stock going up.
- You need to determine the bases that are formed before the stock broke out into new high ground in price. You must also summarize the bases that get created when the stock went on to make their biggest gains.
- In general, the most common pattern that occurs is a “cup with handle”. This is named so because it resembles a coffee cup when viewed from the side.
- You must know the optimal buying point of any stock and that is the pivot point.
- Do not follow a stock up more than 5% past its pivot.
- It is recommended to understand the basics of technical knowledge, so that you know how to read charts to determine when a stock has reached its top and what is the right time to sell.