For a trader to make money, it goes deeper than a simple chart of the market. There are several other factors to consider, such as the price at which a stock traded on the NYSE, and its relative weight on the stock market as a whole.
One example of this was in September when Apple posted a price spike. Analysts at Citi Research had already called for this particular price to go up by 10%, and the Nasdaq fell 11%. But Apple stock has risen 7%, and the Nasdaq is down 0.4%.
On any given day, there will be more than a few who think that one stock is going too high, despite the fact that the markets have rallied for months. So while it’s important to keep an eye on market action, the bigger question is how does it affect you personally? Do you get nervous about buying or selling, and how can the market tell, on a day-to-day basis?
One way to do that is by using my trading tool, which I will explain below:
The Trade Alert tool allows you to see the trend of the NYSE and Nasdaq on a daily basis, and the price changes in those indexes in a given day. You can then pick a trade at any time to buy or sell stocks in either the NYSE or the Nasdaq. The strategy that can be used to increase or decrease the gain or loss of your trades is:
Buy when the stock is above trend Buy when the stock is below trend Buy when the stock is near trend Buy when the stock is on trend buy when the stock is below trend sell when the stock is above trend
(Please note that for a longer-term trend, it will take more than two “buy” trades to achieve a sustained increase, but it is possible.)
There are other trading tools such as this one, which are useful for short- and intermediate-term trading. However, in my opinion a stock trader’s trading tool is more suited for long-term investing. (See my article about this: How to Short Sell).
The charting tool will allow you to see the charts for every trade, so you can see the direction of the market at any given moment. In other words, there is more information you can gain when using a charting tool. A stock trader, or anyone for that matter, can simply open up a charting tool, find stock movements, and try to understand those
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