The stock market is full of stress and anxiety for almost everyone who has a fairly decent amount of money invested in it. It can be a very emotional roller coster ride as you watch your investments jump one day just to drop the next. One of the biggest mistakes investors make in the stock market is buying high and selling low. They jump on a stock that they see has made some excellent jumps in the past months only to have it drop shortly after buying into it. The people that made any money on that stock had already made it a month before that individual bought the stock. The most important thing with the stock market is knowing when to buy and when to sell a stock. An individual must also realize that though you hear stories of people becomming rich quickly in the stock market, it is not something you want to count on as these people who become rich quickly are few and far between.

The best thing you can shoot for in the stock market is a long term, moderately growing stock. Also, it is much better to own a stock that pays dividents. You can reinvest these dividends back into the stock. Usually a divident rate runs around three percent therefore you are essentially getting three percent interest on the money you have invested in that stock no matter how the market is doing. An educated stock investor will learn how to watch companies and be able to give an educated guess as to when their stock will rise or fall. That is just what it is though, a guess. You must always remember not to invest large amounts of your money in the stock market as there will always be a risk involved with it. That said, you must also not be afraid to take a little risk with some of your money.

The stock market investor must also remember that they cannot worry so much about how much their stock changes each day. The only time an investor should do this is if they are investing in penny stocks where the price of a share can double or triple in one day. When investing in regular priced stocks, however, the investor must remember not to get worked up if their stock falls one day. You must look at the long term picture of things. Yes maybe you lost money today but in the last 2 years, you will most likely have gained money. Worrying too much about the daily change in the stock market is the main cause of all of the stress that goes along with investing in the stock market. By eliminating that worry, you also eliminate that stress, making the investing of your money that much more enjoyable. This does not mean that it is bad to check the price of your stock each day, it just means that if, on a certain day, the price happens to fall, do not concern yourself with how much money you lost. Remember, you don't lose or make any money until you sell the shares of stock that you own.

It is always good to research your stock investments as well. There is information available for every company that has stock offerings and you can almost always find some sort of financial information. This can give you a little insight on how the company is doing and possibly how well the stock will perform. Blindly purchasing stock is not a good thing at all to do, sometimes an individual might get lucky but more often than not, this will lead to very little returns or even the loss of all the money invested on that particular stock. You may also ask your broker their opinion on the stock that you plan to buy, they are there to help you in any way they can, remember, usually when you make money, they do too. If you don't have a broker I would recommend that you get some kind of financial assistant. These individuals can be very helpful in building your portfolio and can give you much needed advice.

In order to successfully day trade you must have access to real-time market data. Relying on stale information will result in poor trades.
Day trading is the practice of buying or selling throughout the day, but completely out of the market by the close of the trading day.
Skills and Training
As a career, day trading attracts individuals from many walks of life. Because it is stressful, day traders must be self-disciplined, confident, and patient; they must also have the ability to accept losses, learn from their mistakes and quickly move forward.
Seminars, books, college courses, and Internet-based tutorials all offer the opportunity to learn what you need to know to become a successful day trader—for a price. And the learning never stops. You have to keep up to date on market trends, emerging technologies, and learn new methodologies continually to stay ahead of the game.
Getting Started
As a beginner online trader, as a minimum, you will need a computer, a reliable and fast Internet connection, access to real-time data, an account with a brokerage service, and funds to open a broker account. Never trade with funds you cannot afford to lose. Before jumping into the day trading milieu it is advisable to practice by paper trading. Paper trading simply means virtual or simulated trading. You can find paper trading websites on the Internet that will let you hone your trading skills and get a feel for the tools and methods used by day traders before you invest your cash.
Paper trading is useless if you are not simulating real-life day trading as much as possible. For this reason you should try to approach paper trading as if you were committing real money. This involves setting up a plan dealing with such items as:
- entry & exit points- stop loss limits- profit targets- your desired risk/reward profile- amount of capital to be committed to trades
How long should you paper trade before commencing to "real-life" day trade. There is no set rule in this regard. You should continue paper trading until you become completely comfortable with the trading system and confident in your ability to use such techniques as "buy/sell orders" and "stops”.
It is important to note that success in paper trading does not ensure success when trading in the real market. Many have observed that it is generally easier to profit in a paper trading environment than in the real markets - in large part because emotions tend to cloud trading judgments when real money is at risk. Nevertheless, the proper use of paper trading can be a very useful tool to increase your likelihood of success (or limit your losses) when you begin trading for real.
Most successful day traders are those that have a system or method and stick to it over and over and over. There is no "magic formula" that will result in fantastic results. Most day traders that I know, plan their trades around a theory or method they have faith in and continue this process over and over.As a beginner day online trader, you will want to use a really simple strategy or method to trade. Matching a method of trading with your personality is the only way you will ever feel comfortable in the markets

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.
Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.
Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.
To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

Technical analysis is the study of price data and statistical indicators that are formed by market activity. Market activity illustrates the flow of supply and demand. This supply and demand is a reflection of beliefs and opinions translated into human behaviour and specifically, herd mentality. Therefore, technical analysts would argue, price patterns and indicator signals can be categorised based on historical data with a reasonably high expectation that they will occur again at some point in the future. This argument is based on the theory that human behaviour is innate and, although it adapts and evolves over a long enough period of time, it remains basically the same. Technical analysts focus on the herd mentality and how it affects the individual. It is after all very difficult to hold an opinion contrary to popular consensus especially in an arena where you have to make your opinions know, as you do in the financial markets (in the form of trades).
A Little Bit of History RepeatingMark Twain (the American humorist, writer and lecturer) once said that “History doesn’t repeat itself-at best it sometimes rhymes”. This is true for the subject of this article, technical analysis. Although TA is based on using patterns that have previously occurred to predict the moves of the future no two patterns are ever exactly the same. How can they be when you list the variables that determine price action: trading methodologies, the number of participants, the participants themselves, order sizes, market liquidity, the list goes on. We all know that no two pairs of eyes are ever the same but they are similar enough for you to recognise which are blue or brown etc. The same can be said for price patterns and indicator readings; no two are ever exactly the same but they are similar enough that they can be classified and you can draw a prediction as to where prices are likely to move on completion.
Self-Fulfilling ProphecyOne of the major debates surrounding technical analysis is that it is self-fulfilling. Therefore if enough people use TA and trade the set-ups then they will influence the move they endeavoured to predict in the first place, thus harming its effectiveness. It doesn’t really matter which side of the fence you sit on here, the fact is that a degree of self-fulfilment is inevitable but it doesn’t necessarily guarantee the success or failure of the method. If a price pattern emerges it is not as though every technical trader defines exactly the same entry point and pulls the trigger at exactly the same time or the market would not function. Price would jump instantaneously causing massive slippage and partial fills and then collapse as traders took their profits. The opposite of this would of course be true if technical analysis was deemed as a poor method of analysis. In reality we find ourselves at a happy medium. With enough technical knowledge, a robust trading formula and practical pattern recognition you have a strong basis for a profitable edge. The fact that traders use different entry techniques, price patterns, technical indicators or no technical analysis whatsoever means that there is just enough self fulfilling prophecy present to give technical analysis profit potential

The Stock Market For Beginners can seem like a place to make some easy money fast. You often here in the news how a stock went up four points, and say to yourself, if I had gotten in on that one I could have made a killing. Fast easy money is far from the truth when it comes to the stock market. But you can make money in the stock market. Slow and easy is the way to go, and if you start at an early age, a fast and easy retirement is a reality.

Beginners at stock trading should take the time to get the education they need in order to succeed. You do not see a surgeon pick up a knife and become good at surgery overnight. It takes time and knowledge to be good at anything in life. To begin with, make sure you understand How The Stock Market Works. Start with the basics and work your way up. You did not pick up a book one day and start to read, first you learned the letters of the alphabet.

Decide how you are going to trade. Making this decision is going to tell you what you need to be reading to learn about it. Are you going to scalp, day trade, swing trade, or buy and hold for the long run. Scalping involves buying large quantities of shares in a stock, and you are just looking for a small move in the stock price. Day trading is similar to scalping but you are looking for bigger moves in the price, and you do not hold the stock overnight. Swing trading is when you buy a stock and hold it for a short period of time looking for a substantial move in the price. Buy and hold is when you plan on holding on to the stock for a long time. You believe the company is going to grow in value and the price is going to go much higher.

Next you will need to understand what fundamental analysis and technical analysis is:

Fundamental analysis relies on economic supply and demand information, such as a stocks annual growth rate, and quarterly earnings. This can be very time consuming reading each company's financial reports. Their is a paper called Investors Business Daily to help with this. If you are going to be trading in the markets you should not be with out this paper. Technical analysis is the study of time, price, and sentiment. The tool used for this is charts. Charts show a stocks price history, and with practice we can see everything we need to know about a stock, just by looking at the chart.

The next thing you are going to need is a Stock Trading System. When you go on a vacation you do not just jump in the car and go. You look at a map, decide when you are going to leave, when you are going to start to head home etc. The same is true with the stock market. Many beginners jump in without a plan, you must have a plan in place, why and when you are going to enter the trade, when you are going to get out, and you must stick to the plan. Practice trading on paper before you open an account to see how well you are doing. Once you are doing good on paper then it is time for the real deal.

On Wednesday, SPX opened sharply higher on the better than expected CPI report, although the core rate was in-line. SPX reached about 1,373 before pulling-back sharply. The strong open may have been a "blow-off top," and a bearish head & shoulders (on 15-minute chart) may have been created with the right shoulder at roughly 1,370 and the neckline at 1,357. Several weeks ago, SPX created a bullish inverse head & shoulders (on 15-minute chart) with the neckline at 1,338.

Over the past three days, SPX has traded entirely above the monthly upper Bollinger Band, currently 1,361. The 10-day MA, currently 1,362, has generally held for a month and the 20-day MA, currently 1,351, has generally held for three months. Both MAs have risen sharply. Consequently, SPX is being compressed between 1,370 and the rising 10-day MA. Given some short-term technical indicators are severely overbought, it's likely the compression will result in a move to the downside.

There are three possible scenerios. If the rally continues, there's a multi-year resistance level about 1,400. However, SPX will need to trade well above the monthly upper Bollinger Band, at levels not reached in 10-years, since the middle of the bubble boom. If there's a consolidation, SPX will fall below the 10-day MA, perhaps bounce initially off the 20-day MA, with further significant support levels at 1,338 and 1,326. Initial resistance is 1,370. SPX will then either rally, e.g. about 1,400, or fall, e.g. below 1,300. If there's a correction, support levels will turn into resistance levels through steep falls and volatile downtrends. First major support is 1,290.

Economic data and oil prices will largely determine SPX direction. Last week, the PPI core rate was reported much higher than expected, although the CPI core rate was in-line. Consequently, SPX may discount, over the next few weeks, higher PPI and CPI core rates in next month's report. Oil closed at 56.82 Friday. If oil falls and stabilizes around 50, that may be market bullish, or if oil rises and stabilizes around 60, that may be market bearish. I suspect, a consolidation will take place through the first week of November and then a correction will take place, since intermediate-term technical indicators are overbought. Nonetheless, I wouldn't rule out a rise to about 1,400 in early-November and a fall below 1,300 in late-November.

Because of the large size of the stock market, beginner investors seem to feel overwhelmed as to where to even begin investing their money. To most people, the stock market presents a tangled web of options but does not provide the road map of clarity to direct their way along way in their investment adventure.

The key to investing in the stock market is to become as educated as possible so that you know exactly what is taking place at all times. This helps people to make logical and sound decisions about their money, thus, reducing the stress involved with investing.

The average person, when beginning to entertain the idea of investing in the stock market, falls into one of two categories. Category one is the gambler who feels that investing is definitely a form of gambling and no matter what they do, they are certain that they will lose money rather than make money. It seems that this opinion of investing in stocks is either formed from friends and family that have lost in the stock market or personal experience.

If a person has personally lost in the stock market, it is quite evident that they were not educated enough at the time of their investment into the stock market. Therefore, they must become educated as to what exactly the stock market is as well as how it works in order to become successful investor.

Category two, on the other hand, represents the “go-getter” investor, which is an individual who knows that they should invest into the stock market for the security of their financial future, but they have absolutely no idea where to begin. The “go-getters” tend to leave their financial decisions up to professionals; therefore, they are unable to explain why they own a certain stock.

A typical “go-getter” operates in blind faith, as one stock goes up in value, they more than likely will purchase it. The “go-getter” is in worse shape than the gambler in that they will invest like everyone else and then wonder why they receive unsatisfactory or devastating results. This just proves that the average person should become thoroughly educated about the stock market as well as stocks before investment takes place.

This past week eBay recently released its third quarter results which came up to be pretty favorable to investors as the stock managed to climb pretty significantly the next day. This week, Amazon (AMZN), a similar cousin to the online auction giant will be reporting its own earnings in attempt to edge back to the glory days of nearly five years ago. However, with the recent fall of Amazon shares over those past five years, as an investor, you may be hesitant to pursue such an action into acquiring more or any, for that manner, shares at all. While such sentiment is understandable, you will be missing out on a great chance to earn quite a bit of capital gains if you do not follow such reasoning.

Looking strictly at fundamentals, it is true that Amazon has not preformed at its peak over the course of the past few years. Revenue has increased in a favorable margin the last three years, but unfortunately other factors, such as net profit, have not augmented to many shareholders’ liking. While I believe such statistics don’t lie, there is a more profound implication imbedded into such numbers. Looking strictly at operational margins, Amazon has actually done pretty decently in terms of reporting yearly results which confirm a positive growth stimulated from the company’s actual business, which in my opinion, is probably the most important indicator when looking at fundamentals. The problem Amazon incurred looks directly at its financing and investing expenses, both of which have been terrible as of late. While of course this is undesirable, it is important to understand, with a large rally throughout much of the third quarter complimented with the fact that Amazon is still a young company, both of these factors should climb considerably in the near future. While it may not be reflected directly in this quarter, if Amazon continues its productive operating margin reports, then with economies of scale coupled with a recession looming, expect revenue and profit for Amazon to shoot back up to its glory days from its now oversold price.

Reading that last sentence you may wonder why shares of Amazon would go up when a recession is nearby. The rational can be explained by simple economic theories. As demand for luxury goods continue to increase, producers eventually will have to increase prices to correspond with such preference. As this happens, coupled with the fact of increasing interest rates from the Federal Reserve, consumers will be more reluctant to purchase these luxury goods causing a surplus of goods. When this happens not only are consumers looking for cheaper prices but many of these same buyers are laid off from their respective job because producers have to cut costs somewhere to make up for the large number of inventory already produced. Now you may ask yourself how this relates to Amazon. Well as mentioned with the process of consumers looking for cheaper prices, many of those buyers will turn to online companies such as Amazon or eBay to obtain particular products for a discount price than what they normally would have purchased during times of economic prosperity. As this happens, companies like Amazon amass more revenue, post incredible results, and please shareholders.

To provide some evidence for such a theory, when looking at the recession of 2001 to 2003 you will notice that shares of Amazon rose from about four points to 60 points: an incredible raise of almost 1400%. Now when economic activity was flourishing such as illustrated from 2004 to the present, shares of Amazon dropped nearly 50% from 60 points to near 30 points. Now as the Federal Reserve seems to be finished in terms of raising interest rates which signals that economic activity has tended to slow down, you should expect, according to this theory, shares of Amazon to skyrocket in the near future.

Thus, while normally I would postpone purchasing shares of Amazon for a few more months, with the recent reports of eBay illustrated in a positive light, I would encourage the purchase of shares of Amazon as both companies operate and obtain revenue in a similar fashion. While there is a possibility that the results of Amazon may not be that favorable as I am making this article out to be for this third quarter report, I am very confident that by this time next year shares of Amazon will be at very least at the 45 point range if not higher.

What is Technical Analysis?
Technical analysis is the study of price data and statistical indicators that are formed by market activity. Market activity illustrates the flow of supply and demand. This supply and demand is a reflection of beliefs and opinions translated into human behaviour and specifically, herd mentality. Therefore, technical analysts would argue, price patterns and indicator signals can be categorised based on historical data with a reasonably high expectation that they will occur again at some point in the future. This argument is based on the theory that human behaviour is innate and, although it adapts and evolves over a long enough period of time, it remains basically the same. Technical analysts focus on the herd mentality and how it affects the individual. It is after all very difficult to hold an opinion contrary to popular consensus especially in an arena where you have to make your opinions know, as you do in the financial markets (in the form of trades).

A Little Bit of History Repeating
Mark Twain (the American humorist, writer and lecturer) once said that “History doesn’t repeat itself-at best it sometimes rhymes”. This is true for the subject of this article, technical analysis. Although TA is based on using patterns that have previously occurred to predict the moves of the future no two patterns are ever exactly the same. How can they be when you list the variables that determine price action: trading methodologies, the number of participants, the participants themselves, order sizes, market liquidity, the list goes on. We all know that no two pairs of eyes are ever the same but they are similar enough for you to recognise which are blue or brown etc. The same can be said for price patterns and indicator readings; no two are ever exactly the same but they are similar enough that they can be classified and you can draw a prediction as to where prices are likely to move on completion.

Self-Fulfilling Prophecy
One of the major debates surrounding technical analysis is that it is self-fulfilling. Therefore if enough people use TA and trade the set-ups then they will influence the move they endeavoured to predict in the first place, thus harming its effectiveness. It doesn’t really matter which side of the fence you sit on here, the fact is that a degree of self-fulfilment is inevitable but it doesn’t necessarily guarantee the success or failure of the method. If a price pattern emerges it is not as though every technical trader defines exactly the same entry point and pulls the trigger at exactly the same time or the market would not function. Price would jump instantaneously causing massive slippage and partial fills and then collapse as traders took their profits. The opposite of this would of course be true if technical analysis was deemed as a poor method of analysis. In reality we find ourselves at a happy medium. With enough technical knowledge, a robust trading formula and practical pattern recognition you have a strong basis for a profitable edge. The fact that traders use different entry techniques, price patterns, technical indicators or no technical analysis whatsoever means that there is just enough self fulfilling prophecy present to give technical analysis profit potential.

Market Psychology and Herd Mentality
Moving away from the idea of the self-fulfilling prophecy is the analysis of market psychology and herd mentality. Your ability to read this is an integral part of trading. Technical analysis is designed to give us a means to define this psychology and the resultant market action in the form of price or indicator patterns. We can use these patterns to make a prediction as to the next likely direction price will adopt. Therefore TA is saying that herd mentality is predictable to a degree and does repeat itself with enough accuracy in order to highlight trade opportunities.

A Place for Fundamentals
There is always a place for fundamental analysis in trading, even if this analysis is as basic as knowing when data will be released. In just the same way that technical traders react differently to the same price chart, fundamentalists will react differently to the same piece of news. Market reaction to fundamental news can be unpredictable and violent and the resultant price action will add another variable to the potential success of technical analysis.

Technical Analysis and Timeframes
Technical analysis can be used on all time frames. The general consensus is that the most significant price patterns and indicator set-ups are the ones that occur on the longer time frames, such as daily or weekly charts. Whether you decide to use short, medium or long-term time frames will depend on your characteristics as a trader. However it is always prudent for traders to analyse all timeframes so they can be aware of the full technical picture. It is the short-term price action that that paints the long-term picture and the long-term picture that has a determining effect on short-term moves.

Implications for Technical Analysis and Trading Systems
When using technical analysis to design a trading system it should be remembered that a price pattern is not an ATM machine. Technical analysts focus on predicting the future using observations of the past. However it is more effective to see TA as simply a means to determine entry and exit points. At first glance you may think that attempting to predict the future and determining entry and exit points are the same thing, but altering the phrase you use to describe your objective brings about a profound psychological change on your part. Predicting the future via the use of past examples ultimately leads to your prediction being right or wrong. Not only do we humans hate to be wrong but we hate it even more when we stake money on it. Without going into too much detail about trading psychology (we’ll leave this for another article) almost any emotion whatsoever can have a negative bearing on your trading. Losing a trade (and money) will make you go back to your technical analysis book and library of price charts to find out what on earth went wrong. You will undoubtedly see that the pattern you used for your entry was slightly different (it always is, we have already touched on why) and therefore you could have entered differently or not at all. This is the first stage of doubting your edge which can lead to all sorts of problems. Now suppose your pattern was just an entry point: If you have set your risk and target based on solid money management then you have given yourself the opportunity to profit from the potential you have identified, nothing more, nothing less. Now you must wait for an exit signal or for your target/ risk threshold to be reached. In effect you are reacting to signals the market gives you or flowing with the market. You are participating and not anticipating. Therefore you cannot be right or wrong. Ego, fear and greed will not play a part in your decisions.

The Stockmarket reminds us of the story of ‘The Six Blind Men And The Elephant’ about how our perceptions can lead to totally different realities.

Once upon a time, there were six blind men who wanted to learn what an elephant looked like, since none had ever seen one before. So they took a trip to the forest to discover what an elephant really was like.

The first blind man approached the elephant from its firm flat broadside and bumped his head. He declared to his friends that, “The elephant is just like a wall,”

The second blind man reached out and touched one of the elephant’s tusks and said, “No, this is round and smooth and sharp - the elephant is like a spear.”

Intrigued, the third blind man stepped up to the elephant and touched its trunk. “Well, I can’t agree with either of you; I feel a squirming writhing thing - surely the elephant is just like a snake.”

The fourth blind man was of course by now quite puzzled. So he reached out, and hugged the elephant’s leg. “You are all talking complete nonsense,” he said, “because clearly the elephant is just like a tree.”

Utterly confused, the fifth blind man stepped forward and caught one of the elephant’s ears. “You must all be mad - an elephant is exactly like a fan.”

The sixth man approached, and, holding the elephant’s tail, disagreed. “It’s nothing like any of you say - the elephant is just like a rope.”

Thus the six blind men all perceived one aspect of the elephant and were each right in their own way, but none of them knew what the whole elephant really looked like.

The moral: Depending on one’s perspective reality may be experienced and viewed differently.

The Stockmarket often poses itself like the elephant to many investors. Like the six blind men and the elephant there are differing predictions of what the market will do, and how to invest in it, whether you do or not at all.

But the market seems willing to accommodate the wide variety of even opposing beliefs. Despite the wide array of opinions on the market, we still find investors with contrasting opinions making money on the market at the same time while others make losses.

There’s one thing all investors have in common, and the only reason why anyone might invest in the market. That is to make money.

So the most important thing for you is to ensure that your perspective of the market is serving you.

If it is not, then look for the perspective that will bring you the positive outcomes you want. The best and fastest way to do this is to find someone who has got it right and model what they have done. Find out what their perspective is, what their method and strategies are and follow this until you achieve success.

Beginners in stock trading may note that small amounts may be invested in different stocks instead of putting all eggs in one basket.

That is, different types of stocks may be selected and few stocks or shares may be purchased in each category. By this method, one can avoid hoarding all money in a single company. If different stocks are purchased, a loss in a particular company may be made up with the gains in other industries. Hence it is important that distribution of shares should be done after careful study and analysis.

This distribution may be maintained at all levels. If there is good profit in a particular share, it may be tempting to sell some other shares and invest in the one that is making profit in the short run. However, one should not be in a haste as these lower performing industries may also pick up leaving the investor regretting for having sold it. Only in the case of very poor performers, shares may be sold and the funds diverted to profit making companies.

A good portflio is one where a certain percentage of shares are invested in different types of industry, like automobiles, banks, cement, constructon, and so on and so forth. It need not be equal number of shares, but a certain percentage that the investor decides upon after careful study.

Having made this initial decision, it may be held for a certain period of time, say, a minimum of six months to know the true worth of these shares. Then gradually, changes may be made by selling some portion depending upon the movement of share values in the stock market.

To start with, two or three types of industries may be selected, and slowly after gaining some amount on these shares, some profit could be made which could be diverted to buying other shares, or if there is some amount available to be invested, shares in different industries could be purchased. Also a good portfolio is one which can be capable of being handled by the investor. By such methods a good portfolio could be built up over a period of time.

If you don’t research the stock you are purchasing first, you are doing nothing more than gambling with your money. Stock research will help you to improve your returns on the stocks you purchase. While all the research in the world on a stock cannot guarantee its value will increase, researching your stock purchases will improve the chances of making money.

There are a number of approaches to stock research you can employ and will take a look at those. Fortunately all publicly traded stocks are required to provide financial information about their company on a quarterly and annual basis. It’s from this publicly available information that most stock research is done. You could obtain copies of this information directly from the companies themselves, or you could use one of the many online trading companies, most of which have extensive stock research sections on their web sites.

There are two types of stock analysis research for predicting a company’s stock performance: fundamental and technical. Technical stock research looks for peaks, bottoms, trends, patterns and other factors affecting a stocks performance and is not tied to anything other than the company’s stock performance. Fundamental stock research looks more towards the company’s financial information (also known as quantitative analysis) and looks at a company’s revenue, expenses, assets, liabilities, etc.

Technical Stock Research

Technical stock research is a method of evaluating securities by analyzing statistics generated by market activity, past prices, and volume. Technical stock research does not attempt to measure a security's intrinsic value; instead it looks for patterns and indicators on stock charts that will determine a stocks future performance.