Are Stock Market Charts Important for Successful Investment Research?

Are you new to the stock market?
Are the whole bulls and bears conversations on business channels making you enthusiastic as well as unhinged at the same time?

The stock market and culture of stock investing are indeed confusing, complex. It intimidates people into taking regrettable or celebratory decisions. Success in the stock market is all about being well-informed, doing thorough research, learning your way about stock charts and building a cunning yet effective strategy to increase your probability of profit generation.

Out of the key factors mentioned above, being able to read and understand the stock charts correctly is imperative. Success in the stock market is inclined towards those that judiciously analyze the change in stock market trend over a period and devise a proper strategy to ensure maximum profit.

What is a Stock Chart?

A stock chart comprises of the data of previous years. It informs you of the pattern followed by a particular stock; whether it has gone up, down, or sideways. It helps the investor to decide whether to not it would be safe and financially rewarding to invest in individual stock or not. For short-term strategies, looking at daily charts for observing current-strength and weakness of the stock would be your best bet but if you are thinking about long-term trading, gauging upon weekly chart s would be beneficial.

Most of the stock research companies offer 10-20 years of sock data, but Securities Research provides 100 years of historical stock fundamental performance without any gaps in earnings adjusted for splits. Each stock chart comprises of dozens of critical financial data, organized in a manner, to help to make a smart investment decision.

Following the standards stock charts:

LINE:

It comprises the data point for each day or period which is the closing price for the respective time.

BAR:

A popular charting method, bar charts are made up of vertical bars and horizontal lines that. The top and bottom of vertical bars denote the highs and lows to form the price plot. The short horizontal line crossing the vertical bar represents the close.

CANDLESTICK:

Preferred because of their easier readability, candlestick charts require the open, high, low and close.

Considering that it is such an essential determinant of stock investment research, there is an assumption that reading and understanding Stock Markets Charts are confusing. But that is not the case, for being able to read and understand the stock charts correctly, all you need to know is what are you looking for, what part of chart should you study and how.

Following are the essential elements of the stock market chart, understanding which is necessary to make smart investment decisions and grow further:

VOLUME:

A critical determinant of the stock market, volume helps in determining the market condition and momentum. It comprises bars which represent days while red lines represent the average volume over the last days. The longer the volume bar, the more shares were traded that day.

TIME PERIOD:

The X-Axis denotes the period.

DAILY TRADE RANGE:

It comprises of vertical lines showing the stocks high, low and close – which can be for the day, week or quarter, depending on the time frame you are examining.

IDENTIFICATION:

There are patterns, labels, colors and other identifying parameters in a stock chart including dividends paid, stock splits, and corporate actions.

If you are a beginner looking to make a profit through stock investment, being able to accurately read and understand Stock Market Chart is essential for your success. Seeking the help of an investment or stock research firm such as Securities Research Company increases the likelihood of investing better and hence getting better results. Our stock charts are easy to understand and provide better screening of stocks with a single-view page of stock fundamentals. Unlike other investment research firms, we make use of a semi-log scale to facilitative better stock fundamental performance comparison. If you want to invest right, get in touch with us today.