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i want to know when can i buy shares and when to sell them (short selling) i.e how can i read stock market from stock indicators

2007-01-11 06:08:33 · 21 answers · asked by GORO 1 in Business & Finance Investing

21 answers

the only way is if you have a crystal ball. If you know which way the market was going in advance it would not be investing, it would be fortune telling. If you ever figure it out though, let me know.

2007-01-11 06:16:26 · answer #1 · answered by ricks 5 · 2 0

There are may ways of determining if a stock price will go down.

Everyone else in the world is looking for a guaranteed way of knowing whether they will go up.

Here are some ways of seeing impending disaster before it hits:

1) A press release is issued from the SEC that a company is under investigation.

2) A company anounces that it has significantly overstated its earnings.

3) A company receives a "delisting" notice from their exchange.

4) You turn on the news and hear a report of a class action law suit against a company.

...there are probably a lot more.

(By the way, selling stock isn't the same as "selling short". To short a stock, you have to agree to pay a loan in shares rather than money, then buy shares later to pay the loan. If you guessed right, you'll be buying them at a lower price than your borrowing, and you'll keep the balance.)

2007-01-11 14:19:24 · answer #2 · answered by Anonymous · 1 1

You have to do your research on the companies. There is nothing that can tell exactly how a stock will perform. Investing in the stock market can be a gamble. You could invest in a company that looks great today, but tomorrow they get in trouble for an illegal activity and you could lose all your money.

2007-01-11 14:27:17 · answer #3 · answered by Blunt Honesty 7 · 0 0

You won't!
However, you can improve your odds by using Technical Analysis (Charts).
Try the following:
1) Log on to MSN.com
2) Select MSN Directory
3) Click on Stock Quotes
4) Type a symbol (e.g DOW - for The Dow Chemicals)
5) Click on Historical (left menu under Charts)
6) Select (3 Months - top of the body of the chart)
7) Select Line under Chart Style (Candlestick is for somebody who knows what those weird symbols are. However, you can study and observe how it works. The symbols are pretty distinct. There is a book that deals with these sysmbols).
8) Under Chart Control click on Gridlines
9) On the Secondary Chart select MACD, Linear
10) Scroll down
11) On the Primary Chart, Select Technical Overlays
12) Click on Bollinger Bands
13) Click on Price Control
14) Select Day for Units
15) Click Redraw Chart to save all your settings.
16) Add to your Favorites (your chart will be there always waiting for you)
16) Search MSN MONEY
17) Type TECHNICAL ANALYSIS
18) Click on: What technical analysis terms mean - MSN Money
19) Study the terms and see for your self if you can predict the behaviour of the prices using Bollinger Band, MACD, and Price Channel. You can use the other available techniques if you become familiar with them.
Note: You will observe on the MACD chart the Decrease (below the x-axis) and the Increase (above the x-axis). The chart behaves like a wave (y = sinx).
Buy at the lowest point below the x-axis and sell at the highest point above the x-axis.
Please send me a dollar when you become successful! No kidding! I will donate it to my church.
If you fail, send me an email and I will send you a dollar but please tell me the company that you choose. My example will work for DOW. It will also work for big and stable companies. You will have to be patient to watch the chart on a daily basis.
Good Luck on your investment.
Try it and tell me what happens.

2007-01-11 15:33:21 · answer #4 · answered by ATIJRTX 4 · 0 0

Every share bought or sold on the market means TWO DIFFERENT OPINIONS of the same share......it's an EXCHANGE...therefore if you want to buy something, your broker must find someone that wants to sell...( these days ,that's done instantaneously)... the difference in opininion makes the " winners and losers"
All "indicators" are open to interpretation, and all investors use different "indicators".... so, sorry to say, there is really no answer to your question. You'll just have to fumble along like the rest of us!

2007-01-11 14:25:56 · answer #5 · answered by jebediabartlett 6 · 1 0

First of all you will need to have access to charts. I recommend that also you can be able to read the chart using the candlestick formation methods. See www.candlesticks.com

When looking at charts, one looks firstly at trends-upward or downward. Also you view the 15-, 30-, hourly and daily-charts, if needs be, to see where you are going and to concretize your investigation.

Having done this to determine general trend, then you look for particular candlestick patterns to aid your decision-making process. Once, again see the website.

The main candlestick patterns are-

Bullish trend- Tweezer bottoms, morning star
Bearish trend-Tweezer tops, evening star.

There are many other indicators out there, but I believe that these are the main indicators as to when and how to go into the market.

2007-01-11 14:29:50 · answer #6 · answered by Andrew T 1 · 0 0

I'm sorry, but your question is like asking "how can I know whether the roulette wheel is going to land on red or black?"

If anyone could consistently predict this, they'd be a googillionaire.

They can't, which is why short selling is a high risk activity on a par with hooking up for a wild, uninhibited, unprotected, no-strings sex with a drunken Haitian hottie you met in a Port au Prince nightclub.

2007-01-11 14:32:31 · answer #7 · answered by Anonymous · 0 0

If you knew that all the time then everyone would be rich.

Usually there as indicators as to wheter there is going to be a change in a certain stock as an announcement is about to be made. However you do not know wheter this will be good or bad.

If you knew information about stocks going up or down then you would be insider trading which is illegal.

2007-01-11 14:17:28 · answer #8 · answered by mark_gillibrand 3 · 2 0

Past performance is NO indicator of future performance.

Study the company.

If everyone knew which stocks would increase or decrease, we'd never have lost a dime in the market.

2007-01-11 14:25:55 · answer #9 · answered by WealthBuilder 4 · 1 1

All you can do is what everyone else dose, and speculate, then take a risk. The stock market is a gamble, with educated guess, and research, you can make quite a bit of money......but you can also lose everything.

My word of advise, don't gamble with what you aren't willing (or can't afford) to lose

2007-01-11 14:47:04 · answer #10 · answered by Anonymous · 0 0

Dude, if there was any reliable way to know that there would be a whole lot more millionaires out there. However, just like in horse racing you can make "good bets" by looking at a companies fundamentals and the prospects for growth in their particular industry.

2007-01-11 14:27:04 · answer #11 · answered by Anonymous · 1 0

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