Showing posts with label top. Show all posts
Showing posts with label top. Show all posts
Thursday, August 27, 2015
How to Calculate Daily Stock Return
Find the closing share price of a stock for the current day and the previous day on a financial website, such as Yahoo! Finance, Google Finance or MSN Money. The prices can be found by entering the stock symbol in the 'Get Quotes,' or similarly named, box near the top of the financial website's homepage.
Subtract the previous day's closing price from the current day's close. If the stock increased in value, the number will be positive. A down day will result in a negative number. For example, assume your stock finished yesterday at $24.75 and today the price fell and finished at $22. Subtract $24.75 from $22 to get negative $2.75.
Divide the result by the previous day's close and multiply by 100 to convert to a percentage. Continuing the example, divide negative $2.75 by $24.75 for a result of negative 0.1111. Multiply by 100 to get a daily stock return of -11.11 percent.
Tuesday, August 25, 2015
How to Learn Stock Chart Analysis
TRENDLINES -- or, remember Newton's First Law of Physics? '...an object in motion tends to stay in motion with the same speed and in the same direction unless acted upon by an unbalanced force.' Stock prices tend to follow short- and long-term trends. Look at the image of the chart next to this step. Which direction do you think the 'trend' is? Right, it looks like it's going up. If you can draw a line connecting three or more of the tips of the chart bars together, that can show the trend direction. Try it (yes, physically draw on paper!) on some charts you can find online for free, like at StockCharts.com. Remember, you have to be able to connect 3 or more bar tips!
CHANNELS -- If you draw a trendline on the top tips and bottom tips of chart bars and they form more-or-less parallel lines, this is called a channel. Stock prices tend to stay within channels, for a period of time. See the channel in the picture? If you extend those lines to the right, you may be able to predict what range the stock price may stay within for the immediate future. There are other neat things you can do with channels. Many times, if the stock price crosses over an upper or lower line, it may just be 'breaking out' of that channel and heading further in that direction! Draw some channels on your charts and see if that's what eventually happened.
SUPPORT AND RESISTANCE -- I have expanded the previous chart to the left, to show a longer-term view. Again, drawing horizontal lines that connect 3 or more bar tips, I have drawn a red support line and a green resistance line. 'Support' means that stock buyers tend to buy when it gets to that price (supporting any more downward movement) and 'resistance' means that stock sellers tend to sell when it gets to that price (resisting any more upward movement, see?). See how the price 'tested' the resistance line a couple times, crossed it a couple times unsuccessfully, and then finally broke up through it? This happens ALL THE TIME. Draw some support and resistance lines on some charts and see for yourself!
MEGAPHONE -- Many times, the upper and lower channel lines you draw will not be parallel. When the lines are broadening, that's called a 'megaphone' pattern. This suggests growing disagreement among the buyers and sellers as to what is a good price. Generally, if this happens after an uptrend, the likely next move is downward. Find some charts with this pattern and see what happened.
TRIANGLES -- Again, if the upper and lower trendlines are not parallel, and are narrowing, this is called a 'triangle' pattern. Obviously, the price will not continue narrowing indefinitely until it hits the apex of the triangle and then stop moving. We can sometimes predict what will happen when this pattern occurs. 'Ascending triangles', where the upper line is horizontal, signal a possible move up through the upper line. 'Descending triangles', where the lower line is horizontal, signal a possible move down. And a 'symmetrical triangle', where neither line is horizontal, well... this one could go either way!
Saturday, August 15, 2015
How to Read Stock Quotes Online From Yahoo! Finance
Go to the Yahoo! Finance Web site (see Resources section).
Find the 'Get Quotes' box at the top left of the home page.
Type in your stock's ticker symbol into the box.
Click the 'Get Quotes' button.
Look at the gray bar across the top of the page with the name of your stock appearing in large black letters. The current price quote for that stock will be in large black numbers directly across from the stock name.
Spot the arrow next to the current price of the stock. If the arrow is green and pointing upward, the stock price is trading up by the amount shown next to the green arrow. However, if the arrow is red and pointing down, the stock price is trading down by the amount show next to the red arrow.
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