As an investor, you tend to look into factors such as the earnings of a company and its sales profit to determine the kind of stocks you wish to buy on the share market. Similarly, seasoned investors use share market live charts to determine when stocks must be bought or sold.
It is critical for investors to interpret the price and volume patterns seen on live-stock charts to make a crucial decision on buying and selling.
What influences a share price and how you can read them
Much of the trading activity in the market are performed by fund managers and large institutional investors and these reflect on live charts. Their movements of buying and selling are critical in determining whether your stock is driven up or down. This makes understanding and reading share market charts one of the most valuable investing skill for an investor. Hence, if you read live tables, you would want tobuy stocks that institutional investors are going after and stay away from shares that are being aggressively sold by them. By evaluating stock charts, you will realise how large investors are performing. You will be able to gauge which stock is being sold or purchased heavily.Thus, you can use that information to your benefit and identify the right time of buying, selling or holding your stock positions.
Share market live charts reveal more than just technical information. They offer you a visual representation of the fluctuations in share prices and trading volumes that take place daily. They present an objective and overall picture of what is taking place with the stock that can help in over-riding news headlines, hype and rumours prevailing in the market. Through live-stock charts you can find out
- Whether fund managers are buying aggressively or heading quickly towards an exit
- Whether shares are being offloaded in large volumes
- That in spite of recent market fluctuations and economic downturn, are large investors picking up more shares
- Whether there are more substantial gains in store with aggressive buying of shares to support a particular stock
- How institutional and large investors are reacting to stock market news
- Whether industry and market information is compelling investors to buy and sell based on the news
New investors trading in the stock market may find reading stock charts confusing and intimidating at first. However, with essential tips, practice and guidelines from reputed brokers such as Kotak Securities, you will be able to recognize winning stocks and learn how to buy shares, while spotting the right time to sell. It is crucial to make a stock market chart analysis as a vital regime of your investing routine. By using charts, you will be able to skim through your stock ideas and recommendations through a checklist.
Avoiding chart trading is akin to investing with a blindfold. It could be dangerous to enter the share market without knowledge of the stock you are looking to buy and sell. By not knowing what is really happening with the stock, you will not be able to keep fluctuations in perspective, which could be hazardous to your overall investing pattern.