Why Learn to Read Stock Charts?
Two
basic historical methods:
In years past there were two basic methods available for investors and
traders to study and to buy or sell stocks. The first and only method
readily on hand was the “ticker tape”. In the early
1900s, ticker machines could relay the price of the stock on a piece of
tape. Or sometimes on electronic boards that
“scrolled-out” the information. This was investing
in “real time.”
The second method that investors used was, and still is, studying the
financial reports and activity of particular companies and industries.
This method is commonly known as “fundamental”
analysis. As important accounting standards came into play, investors
could plot and analyze financial trends in sales, earnings,
price-to-earnings ratios, balance sheet activity such as cash in bank,
debt and capital activity.
The
Internet, Stock Charts and “Cooking the Books”:
With the advent of the Internet, stock investors and traders alike are
able to capture a visual picture of the price of a stock over time.
Trend analysis and studying stock price channels became popular and
very powerful. Wise investment decisions could be made based upon the
movement of price alone. It’s been said that “the
price doesn’t lie.”
But stock price manipulation became somewhat rampant with some
companies as financial owners and departments misrepresented financial
activity to prop up stock prices.
“Cooking the books”, the common term for financial
misrepresentation, has brutally affected many investors in recent
years. Many have lost their entire retirement savings. Others simply
have lost their confidence concerning where to place their
“nest egg.”
There still exist possibilities for certain holders of financial
information to try and manipulate stock prices. Nevertheless, many
investors and traders have turned to stock chart analysis. Stock chart
analysis does seem to offer a good alternative investment strategy
despite these lingering potential problems of stock price manipulation.
Another
Case for Studying Stock Charts:
There is another reason for analyzing stock charts other than relying
on fundamental activity. Many investors are
“visual” learners. Many people are not inclined to
crunching numbers. Learning to read stock charts offers these investors
and traders a method to not only do historical analysis but also to try
a discern patterns and project trends into the future.
Stock
Charts as a Timing Tool:
The real power in stock charts is how they can help in
“timing” a stock purchase or sale. Fundamental
analysis will often reveal “which” potential stock
or stocks to invest in; and stock chart analysis will often show you
“when” to invest in these stocks.
Learn how YOU can read stock charts like a pro. Order our $7 video and report now!
