How to Trade Stocks - Make Money using just Support and Resistance - a VideoFor the absolute basics on trading stocks see - how to trade stocks online . If you are looking to make money from the stock market using the easiest stock trading strategy then remember that many professional traders use nothing more complicated than the notions of support and resistance.
Stock trading info. for beginners and experts
A trend can be up, down or sideways but as long as you can correctly identify the channel then you can trade by buying at support and selling at resistance. This is clearly a short-term trading method but if you get it right then it can be highly profitable and also easy to follow. Lots of professional traders just use this as their basic method. Remember though that you need to have 'stop losses' in place i.e. you need to ensure that if the stock continues tof all after you have bought it then you get out of the trade if it falls 5% or so. You make a loss but you don't get wiped out. In stock trading it is important that you only lose battles not the war.
Trading stocks is all about calculating the risk reward ratio, you can't possibly win every time, but you must make sure that your winners make you more money than you lose on your losers.
If you want to make your trading slightly more complicated then you can combine support and resistance with moving averages. In short-term trading it is not a good idea to buy a stock that is below its 200 day moving average and it is also not a good idea to by a stock when its 5 day moving average is pointing down - for details see this video on moving averages.
For a video explaining trend lines see - stock trading using trend lines