How To Read Stock Charts

If you own the stock you get a small chunk of the profit.

How to read stock charts. Unlike other articles which show you everything at once and then detail the components. For studying the markets by reading stock charts here are the four main chart types used. I will buildup the chart like layers of a cake. As we talk through each layer it will help you understand the significance of each item. A dividend is when the company the board of directors decides to give a portion of its earnings back to its shareholders.

How to read stock charts. The essentials of the stock chart need to break down and key things should be focused on reading the stock chart. A stock may take huge dives and or make huge climbs. Similar to someone who would invest in the debt capital markets an equity trader invests in the equity capital markets and exchanges their money for company stocks instead of. Bar charts take the highest and lowest prices of the day plus the closing price of a stock to chart its trend.

Overview of how to read stock charts. At the bottom of the chart you ll see if and when the company issued a dividend as well as if there was ever a stock split. If you re going to actively trade stocks as a stock market investor equity trader an equity trader is someone who participates in the buying and selling of company shares on the equity market.