CFD, Options, Warrants, Forex, Shares, Products & Services, Psychology, Fundamental Analysis, Technical Analysis

Technical Analysis: Support and Resistance

What is support and resistance?

Once you understand what trends are and learn how to interpret them, the next concept will be resistance and support. These levels show the interplay of supply and demand in the stock market, dictated by traders when they are buying or selling.


Technical Analysis: Trends

How to interpret trends

Technical analysis may intimidating. Most often newbies get turned off by this method because it takes a lot of work and patience. Imagine having to go over multicoloured charts for days on end, trying to determine where you should make your entry and exit in future trades. However, if your the type of person who prefers to have a visual interpretation of figures then technical analysis works for you. Interpreting charts may take time, but they plot price movements that are important for trading.

Analysing Trends

Basics of Technical Analysis

Types of charts in technical analysis

You won't be able to predict market changes, but there are ways to gain insight on its movements. Traders can use indicators that can help them in future trades. If you prefer to keep an eye on price movements, you will be using technical analysis. In simple terms, its the use of charts to interpret price movements of a particular stock or the market as a whole. This analysis believes that buying, selling, information and psychology of traders play a factor in the movement of a stock price.

Advantages of a CFD

Why you should trade a CFD.

CFD is an agreement between a buyer and seller, to exchange the difference in value of a share between the time that is opened and closed. CFD allows you to trade in a range of markets without actually buying the share, and profit whether the market goes up or down. Traders can benefit from the change in stock prices without havign to pay for the full price. CFDs are also leveraged financial instruments,which means you can earn big profits for a small initial outlay.

CFD Advantages:

Qualities of an Investor

The qualities you need to be a successful investor

Before you delve into share trading, you have to ask yourself if you have the qualities of an investor. Making consistent profits from the stock market isn't about discovering some ultimate strategy that will guarantee money. Ultimately all your decisions will determine whether you will earn money or blow your account.

Am I Suited for Investing?

Starting Young

Should you trade in your 20s?

Starting early in the stock market is a good way to take advantage of compounded interest. Its also a good opportunity to sidestepping a regular 9 to 5 job, and eventually earning money. But the thing is, making money out of the stock market is not as exciting as what the Wallstreet or Boiler Room movie portrays it to be. Sure you have the chance to earn a lot of money, but being successful at share trading takes a lot of work, and long hours in front of the computer on your own. So before you commit to trading for a living there are still some points that you have to consider.

Stock Market Gurus

Should you invest your money on trading gurus?

When it comes to share trading, its certainly great to have a mentor that can point you the right direction. Objective criticism is helpful in exposing mistakes that you missed. An advice from an expert can earn and save you money. But the problem is how do you seperate the expert from the average joe with a gift of gab? A good marketing strategy can easily manipulate people into forking over their hard earned cash, without them knowing it. The media has been doing since the dawn of time.

Trading Basics

Share trading basics for beginners

Share trading can be complicated when you go over all the details and information that you need to know. It can also be very overwhelming for a newbie who doesn't want to lose money and have an early retirement. But there are key basic concepts that can be very helpful for the beginner, that doesn't require you to interpret a whole bunch of charts or read through pages of company profiles.

The Poseidon Bubble

What happens when a bubble bursts in the stock market.

Apart from the dotcom bubble burst, there was an earlier crash that sent a domino effect through the stock market.

Why You Should Trade Shares

Reasons why you should trade.

The ultimate goal of share trading is to earn money, but there are varying reasons why people trade. Making money from the stock market can be a huge gamble, and involves wagering a considerable amount of cash in something that has no certain outcome. But if you look at both the details and the big picture, trading does have its perks that renders it as an attractive venture.

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