Stock Market AnalysisWhen it comes to trading stocks, it’s important to understand how to understand the principles of stock market analysis so you can decide which stocks to buy or sell for your portfolio, such as stocks belonging to the S&P 500, which contains some of the most popular stocks in the US from large businesses that trade on both of the US stock market exchanges. Without that knowledge, you could lose thousands of dollars and be totally lost in the system.What is stock market analysis?Stock market analysis is the process of investigating and studying data on existing stocks and trying to predict how they will do in the stock market. This is used by most traders due to the fact that stock prices can change from moment to moment, but they normally have a pattern of either going up or down that can be analyzed and followed. Some investors use what is called technical analysis. This is mostly used to figure out the possible return the stock will provide its owners. When traders get tips on various stocks it is usually after this sort of analysis.What can influence stock returns or losses?Multiple factors go into stock market analysis to see what sort of thing causes the prices to go up or down. Some of these factors include the business’ background, the economy, historic trends, or even natural disasters like hurricanes or earthquakes. You can’t use a system of stock market analysis over the long term, however, because it doesn’t include any information on a business’ future potential. But you can use it to keep track of the ups and downs of a particular stock.How do traders use stock market analysis?Traders have multiple tools to use when it comes to financial market analysis. They can use well-developed patterns, or use what is called support and resistance. Support is when they track the level from which lower stock prices are predicted to go up from and resistance is the height the stock is predicted to get to before it may go down in price again. The theory is that most stocks can be predicted to rise or fall after they get to a support or resistance amount.Other Methods of stock market analysisSome of the other methods of stock market analysis include:Charts and PatternsWhen it comes to tracking stocks one of the methods is through charts and patterns. A system of bar charts is normally used that represent periods of time (like daily, weekly, etc). The top of this chart for stock market analysis would list the high price while the smaller bar chart to the right lists the opening and the other one lists the closing prices.Another chart sometimes used is called a candlestick chart. It uses a slightly different system of markings to show the highs and lows and prices of the stock it is following. It also uses a color system, with red or black if the stock’s closing cost was lower than the one prior to this one or white and green if it was more.A particular pattern that is often seen in stock market analysis is known as the Cup and Handle. This is when a stock starts off with a high price and then dips in cost and eventually returns to a higher price. When that stock levels out in costs, it is called the handle of the stock, and this can be a good place to buy so the trader makes good profits when it goes back up, which is the cup part of the pattern.Head and Shoulders is yet another stock pattern. It means that the stock first comes to a peak (a shoulder), then gets lower and then forms another even higher peak (the head), and then goes up again, (another shoulder).Moving Average – A very popular stock analysis tool, this one reveals the stock’s median cost within a certain timeframe. It is plotted on a chart so that traders can see what the stock’s pattern is.Relative Strength Index – This market analysis tool looks at a comparison of the amount of days a stock ends on a positive note and the amount of days it ends on a negative note. It is used over a specified amount of time, normally nine to 15 days. In order to use it, the traders divide the median amount of days the stock goes up by the median amount of days it goes down. The result is added to one and employed to divide 100. Then you subtract that result from 100 to get the stock’s relative strength index. Depending on that amount, a trader can tell if a stock is strong or weak.Money Flow Index – This process uses the amount of shares that were traded plus the cost of the stock. If this number is high, you should sell your stock, but if it is below 30 you should buy more.Bollinger Bands – This type of market analysis is recorded as a plotted group of three lines. The results are based on how volatile the stock’s prices are moving.All in all, you must use some sort of stock market analysis if you want to be successful in trading on the stock market.
A stock picking software is capable of providing dynamic stock content. The robot named Marl possesses a database, which is constantly evolving and expanding in size, patterns and information.Marl a stock picking robot gets very interested in some of the stocks, as he suddenly senses one not reacting to price changes around it. The price sits there as if stuck in a groove for several days. Marl recognizes those trading patterns as indicative of stocks on the verge of increasing. He goes to work analyzing the chart for patterns in the price changes, watching closely, he signals when to buy the stock at the existing price. Marl does the same job as stock fund managers in the stock exchanges around the world. Marl’s dynamic stock content just leads to better decisions and highly successful stock trades.It takes a human between 8-10 seconds to study a stock chart containing stock content but Marl can analyze seven charts every second. Therefore, in 8-10 seconds a human analyzes one stock chart while Marl analyzes 56-70 stock charts in the same 8-10 seconds. Marl has within his robotic brain capable of exact stock picking. For $28,000, anyone can purchase a stock data content license and do his own bidding on the stock markets. The secret to success is the knowledge to analyze the stock market predictions found in the price and chart patterns gathered by the stock pick software.Owners of a personal Stock Trading Robot, no longer have a stock guru because Michael does not come with the robot. The owner of a private robot patterned after Marl, lacks certainty in making choices even though he possesses dynamic stock content. He would no longer fell limited by perhaps by only two weekly stock picks.True the private owner of a robot providing dynamic stock content is not limited to two stock purchases weekly and can use his personal clickbank everyday. However, private owners can loose, rather than double their stock value, the real purpose of a stock picking robot, when they lack the ability to interpret effectively the reports generated. These contain dynamic stock content, which if misinterpreted can be tragic in stock market trading.The ability to translate information into money comes from disciplined behavior and prudent actions free of greed motivated, decisions. On October 30, 2007 at 8 o’clock in the morning, one of Michael’s stocks stood at 0.13. At 3:53 in the afternoon Marl recorded a sudden growth of 18.75%. The evening closed as the stocks value stood at $2437.50. The next day October 31, 2007 at 10 o’clock in the morning the stock opened at 0.265 increases the same day reached 113.85% yielding $2439.75. By the end of two days, the men made $5192.00Although, the robot provides dynamic stock content, some private owners may not possess the knowledge to interpret the price and stock patterns successfully. The secret and the key for doubling stock trade using a stock pick database are comprehension, interpretation and sound decisions. Doubling your money is the result of possessing dynamic stock content, without which stock trading is less stable. Since earlier this year, present subscribers of the “Doubling Your Money Weekly Newsletter”, traders who took Michael’s advice, experienced weekly stock increases averaging 105.28%.
Finding the best stocks for stock trading isn’t as difficult as it used to be. In fact, the stock market these days makes trading stocks easier than ever. If you want to buy stocks and hold them, that’s one thing. But if you’re set on trading stocks, there are some out there that are actually designed for that purpose, believe it or not.I got into stock trading and options trading in 1973. To me, nothing was more frustrating than calling the stock market correctly, and then making the wrong stock picks. These days, finding the best stocks to trade is virtually a piece of cake.Start by asking yourself what segment of the stock market you want to trade. Then decide whether you want to bet UP or DOWN. Then, how much action do you want in terms of volatility or leverage?When the stock market is on fire, you don’t have time to analyze a long list of traditional stock issues. Be prepared ahead of time.Leveraged and inverse ETFs are not for people who want to buy stocks and hold them till the cows come home. They are designed for stock trading. Whether you want to bet on the up side or down side, they are in my opinion the best stocks to play.Most people think of stock trading in terms of making quick profits when the stock market is going up. I have found that the real profit potential in trading stocks is on the down side. Let me tell you why.Let’s take a stock market that is full of uncertainty as in the fourth quarter of 2009. Stocks had moved up over 50% in only 7 months. One fly in the ointment could cause heavy selling, especially in the short term. Throughout history, the biggest short-term moves on a percentage basis have been on the down side.A few years ago, taking a short position (betting DOWN) was not as easy as it is today. For example, you could short a stock or buy PUT options. Many people who were interested in stock trading were not inclined to do either because they found both alternatives intimidating.Now you can buy stocks that go up big time when the market or a segment of it falls. These are called LEVERAGED INVERSE ETFs. These stocks trade like any other stock. They are actually funds (exchange traded funds) designed to track a stock index inversely with 2X or 3X leverage. They accomplish this by investing in derivatives.To you, it means this. If you think that stocks in general are in for a nasty fall, you can make a simple stock purchase and get a piece of the action. For example, stock symbol (SDS) is a heavily traded ETF that attempts to inversely track the S&P 500 Index with 2X leverage. If the market as measured by that index falls 2% in one day, SDS should go up about 4%.If you’re into stock trading, ETFs were made for you. You can bet on the market in general or on various sectors including gold, real estate, and financial stocks. Not all ETFs employ leverage, but many do.In stock trading don’t overlook the action on the down side. If you’re really good at trading stocks, all you need is market volatility. And the biggest profits can be made when the stock market has a really bad day or two.