Things You'll Need:
- Good stock broker
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Step 1
Using technical analysis is the study of how a stock has performed and likely to perform.The stock trader uses information to determine where the stock price is going. You need to know a little about investing in stocks before you attempt to start to trade on your own.
You need to read on stock trading and set your goals accordingly,there are many books and internet articles on investing. -
Step 2
The first thing you need to learn is how to read stock charts and apply this to your technical analysis when trading stocks.
What is the overall trend of the stock over several months.What are the moving averages over the same time period.You need to look at the support and resistance areas. Momentum indicators such as the MACD and the Relative Strength Index or RSI. Most stock brokers have charting software that will do all this and more. -
Step 3
Technical analysis software and charting packages are usually included when you have a investment account with a broker.What you want to look for is ,does the analysis software monitor certain equities, such as options, stocks, currencies, or the futures market.It really depends on what type of trading you want to do.
You need to understand price movements in the stock and why it is happening,is it from news or buying or selling pressure. Stock trading can be fun and profitable you just need to learn how to trade before you jump in.Remember it does not matter if the markets are up or if they are down.If you understand how to go long in up markets and how to go short in down markets you will make money from good technical analysis.
Comments
Gracie1402 said
on 3/5/2009 This is a great article and I for one am glad there are smarter investors out there than me :)