There are many ways to analyzes stocks, but technical analysis is by far my favorite! This method of analyzing stocks uses charts to determine a stock’s future. You will learn in this post that there are certain indicators and chart patterns that will alert you as to whether a stock will be going up or down. A lot of other traders are utilizing this method as well and that is why it works! Stocks prices are based on the supply and demand of shares. When more traders are buying shares, the price per share will increase do to the high demand. When more traders are selling than buying the opposite will occur, and the stock price will decrease. So when you have thousands of traders looking at an indicator that is bullish (indicating a stock price should increase), they all buy and the stock price will increase, and this is why technical analysis works!

Support and Resistance

When analyzing charts, there are two terms that you must be aware of: support and resistance. You will see these terms everywhere (“there was resistance at $2…there was support at $1”). Basically these are the prices that a stock will seldom surpass or go under.

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So you have a little money that you’ve set aside for trading stocks (or maybe a lot; lucky you!) and you’re all ready to dive into the market, or are you? What are stocks? How do you trade them? Where do you trade them? How do you make money? In this post I will provide the answers to all of these questions and make sure you are prepared to start making money in the stock market!

What are stocks?

Stocks are securities that represent ownership in a corporation, which is why each stock is called a share. Each stock you own represents your share of the corporation.

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