Charting for Beginners? Support-Resistance

How to Trade Stocks using Charts - Support and Resistance

Actually, support and resistance levels are not just for beginners to stock trading. Many professional stock traders time their shares buying and selling on nothing more complicated than support and resistance levels.

Take a look at this excellent video by 'old school chartist' for a detailed explanation on what support and resistance levels and why they work.

Basically stock charts are not just random lines on a screen, they work as a trading strategy because they reflect the behavior of crowds. When traders expect something to happen, they make it happen by behaving in a certain way and so the charts become self-fulfilling prophecies.

For more information on support and resistance check out this earlier post - how to trade stocks - one easy strategy

Time to Buy Stocks Finally?

Stock Trading - Time to Buy Stocks At Last?

Investment institutions have been buying stocks over the last month for the long-term. Could it be that we have seen the bottom in the recent downturn? It's beginning to look that way, although this week could be volatile given the news everyone is waiting for out of Europe on Wednesday, which is quite likely to disappoint, as usual.
Timing is money when it comes to stock trading

So we might see a pull back of around 5% or so in which case I might finally decide it's time to get back into the stock market by actually buying some stocks !

See the video from 'stock trading master' in which he explains everything in detail and in a very graphic manner, that is easy to understand.

Plus don't forget that the 4th quarter of the year is usually the best for buying stocks.

See also - popular posts - stock charting for beginners