Live currency stock charts are there to help traders understand what is going on in the market in real time. There is so much stock market traders can do with a live chart if they understand how to read the chart. To focal points in this piece will be on
What the stock market is
How to read a currency stock chart
WHAT IS THE STOCK MARKET ALL ABOUT?
Before we go into what the stock market is, let us take a look at the term “stock”. Stock is the capital raised by a company from issuing shares. So when a company sells shares, the money raised from selling the shares is known as stock. The stock market is where company stocks are traded among buyers and sellers of the stock of concern. Understand the difference between stocks and shares; stock is the capital raised from issuing shares, while a share is a single unit of a stock.
The stock market is made of components like the stock market brokerages, stock market traders, stock market index, stock market diagram, and stock exchange. The most important of them all is the stock exchange. Every other component works towards successful stock exchange among traders of the stock market.
WHAT MOVES THE STOCK MARKET?
A good understanding of what moves the stock market will help stock investors tread cautiously in order to ensure a successful stock exchange business. Factors that determine the rise and fall in the value of a stock include the following
Lack of suitable alternatives
Supply and demand
Opinion of famous investors
Political and social issues
If there are more buyers than sellers of a particular stock, the value of the stock will tend to rise. On the other hand, if there are more sellers than buyers, the value of the stock will tend to fall.
HOW TO READ A STOCK CHART IN LESS THAN A MINUTE
Usually, the stock charts at a glance show complex graphs showing the upward and downward movements of a particular stock price or a stock index. According to a lot of stock analysts, technical analysis is one of the ways a trader can decipher a stock chart. Basically, they believe that with the pattern displayed on the chart from the past to what it is currently, and combine that with the tenets of human behavior in order to predict where the stock is going. That is what the pundits have to say, and traders that follow the stock market religiously will understand that that is not all there is to know about a chart. In simple terms, the best way to read a stock chart in less than a minute include
Looking at the general trend over the past six months
Find out if the spikes are huge; that will mean that the company is undergoing a significant time
Combine the chart to other companies of similar interest
From just these three steps, one can tell if the stock in question is going well or not, and then decide whether to leave the stocks or to sell them off.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.