Who would have thought that a stock market graph could be the meeting point for so many investors in the 21st century. Lo and behold, the internet has yielded a grand meeting of minds around the world, culminating across platforms and forums, and becoming a closer-knit community than ever before. Yes, there are always setbacks, but there is much to learn from a stock market graph that goes beyond the numbers, facts, and figures that lay before you when you open one up.
For most investors starting out, or even seasoned veterans who are making the pilgrimage to the online platforms that are becoming increasingly popular and standard – there can be some miscommunication as to the true value of a stock market graph and the various points of contact that you can attain from it.
Thanks to the instantaneous afflictions of the internet, investing communities are beginning to analyse readings from a stock market graph in tandem, effectively bringing froth a whole new perspective in the investing world.
This article will go over the bare essentials of a stock market graph, and why the community is beginning to become savvier and smarter as they bond closer together.
Your Stock Market Graph
A stock market graph allows you to open up a share and understand the inner workings of what makes it tick, like deconstructing a watch, there are a lot of small parts that seem insignificant – don’t be fooled, they add up to something magical.
We’re going to break down some of the common tropes and signals that people use in the community so that it doesn’t feel like you need Google translate to understand what’s going on when you delve into the warm embrace of an online community of investors.
The Trend Line
Ah yes, the old trending line is a term you will likely come across most often in the online communities – essentially this is the heartbeat of a share price, the line that is seen in all the films and on the computers of hackers everywhere in Hollywood. The trend line equates to the price over a time period that can be adjusted in your stock market graph to reflect accordingly.
While there are rises and falls in all share prices eventually, there is no need to panic or take away too much from a singular shift in the trend line of a share – instead use your stock market graph to learn what occurred around this time – this is your study aid, your road to perdition in the investing world.
The Trade Volume
Another common trope you’ll come across on your stock market graph is that of the trade volume. Many forums will espouse the high trading volume as being indicative of one thing or another, and if you don’t understand the fundamentals of the trading volume – you have a danger of falling into believing the gospel preaching of a keyboard warrior.
Essentially, the trading volume refers to the amount of buying and selling that has occurred in a space of time, this usually correlates rather well with a major shift in the aforementioned trend line – but not always. Like we said before, it is a matter of studying and understanding when things occur and attempting to find a pattern of behaviour for future investments.
These are two of the foundational principles in your investing game, understanding how to read your stock market graph with just these two metrics in mind will set you on a path of self-discovery and education that cannot be held back with ease.