Understanding Stock Trends

Understanding Stock Trends

Stock prices never remain static for long, and they do tend toward trends. What is a stock market trend? When large numbers of investors purchase a stock, the security is on an uptrend. When investors start selling, the stock is on a downtrend. Traders know that volume follows such trends. When a stock price doesn’t move much in either direction, it’s a sideways trend. To understand these trends, you need the help of sophisticated, up-to-the-second technical charts and data. SureTrader’s platform gives you access to all this valuable data so you can understand stock trends.

What are Trends in the Market?

Using technical analysis, traders can track trends in the market. Learning how to decipher these charts and the figures contained within them is part of becoming a successful trader & part of understanding stock trends. For uptrends, traders look for rising lows and higher highs. For downtrends, it’s the opposite – falling highs and lower lows. Stocks on a sideways trend have equal high and lows. If particular stocks are stuck in a sideways trend – which can last for months or even years for individual securities – traders usually avoid them.

Predicting Stock Market Trends

Traders may become quite good at predicting stock market trends by monitoring certain indicators. These include using top-notch technical charts and state-of-the-art charting software, such as those offered by SureTrader. Day traders compare intraday trends over a period of days, looking for the “higher highs” or “lower lows.” The longer the trend, the more value a traders gives it. That means a monthly trend is far more informational than a weekly or daily trend.

Understanding Sotck Sideways Trends

Market Trend Up and Down Causes

Various factors contribute to market trend up and down causes. What does a bull market mean in history, besides the fact that stocks are rising? It often means “irrational exuberance” among traders, especially in its late stages. Legend has it that Joseph P. Kennedy, the father of the president, sold his stocks before the Great Crash of 1929 when his shoeshine boy gave him a tip. He knew people with no knowledge of the market were driving it onward. While the economy, world events and government fiscal policy all cause markets to move up and down, crowd psychology plays a very real role. Bull markets rise from overall optimism, while bear markets continue falling as public pessimism persists. Being aware of these factors is part of understanding stock trends.

The SureTrader Advantage

For novice traders, predicting stock market trends may seem daunting, but it’s all a matter of educating yourself and learning trading fundamentals. Try SureTrader’s 100K demo program to study technical analysis and learn to spot trends before spending your own money on trades. It’s just one more reason SureTrader offers the best trading platform online.

Disclaimer: All information provided “as is” for informational purposes only, not intended as a recommendation to buy or sell. Swiss America Securities, Ltd. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Understanding Stock Trends

Understanding Stock Trends

Understanding Stock Trends

Stock prices never remain static for long, and they do tend toward trends. What is a stock market trend? When large numbers of investors purchase a stock, the security is on an uptrend. When investors start selling, the stock is on a downtrend. Traders know that volume follows such trends. When a stock price doesn’t move much in either direction, it’s a sideways trend. To understand these trends, you need the help of sophisticated, up-to-the-second technical charts and data. SureTrader’s platform gives you access to all this valuable data so you can understand stock trends.

What are Trends in the Market?

Using technical analysis, traders can track trends in the market. Learning how to decipher these charts and the figures contained within them is part of becoming a successful trader & part of understanding stock trends. For uptrends, traders look for rising lows and higher highs. For downtrends, it’s the opposite – falling highs and lower lows. Stocks on a sideways trend have equal high and lows. If particular stocks are stuck in a sideways trend – which can last for months or even years for individual securities – traders usually avoid them.

Predicting Stock Market Trends

Traders may become quite good at predicting stock market trends by monitoring certain indicators. These include using top-notch technical charts and state-of-the-art charting software, such as those offered by SureTrader. Day traders compare intraday trends over a period of days, looking for the “higher highs” or “lower lows.” The longer the trend, the more value a traders gives it. That means a monthly trend is far more informational than a weekly or daily trend.

Understanding Sotck Sideways Trends

Market Trend Up and Down Causes

Various factors contribute to market trend up and down causes. What does a bull market mean in history, besides the fact that stocks are rising? It often means “irrational exuberance” among traders, especially in its late stages. Legend has it that Joseph P. Kennedy, the father of the president, sold his stocks before the Great Crash of 1929 when his shoeshine boy gave him a tip. He knew people with no knowledge of the market were driving it onward. While the economy, world events and government fiscal policy all cause markets to move up and down, crowd psychology plays a very real role. Bull markets rise from overall optimism, while bear markets continue falling as public pessimism persists. Being aware of these factors is part of understanding stock trends.

The SureTrader Advantage

For novice traders, predicting stock market trends may seem daunting, but it’s all a matter of educating yourself and learning trading fundamentals. Try SureTrader’s 100K demo program to study technical analysis and learn to spot trends before spending your own money on trades. It’s just one more reason SureTrader offers the best trading platform online.

Disclaimer: All information provided “as is” for informational purposes only, not intended as a recommendation to buy or sell. Swiss America Securities, Ltd. is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

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