Best Heart Rate Monitors – Charting Stocks – How To Read Stock Charts For Options Trading
Charting Stocks – How To Read Stock Charts For Options Trading
Most stock option courses do not have a good lesson on charting stocks. If you’re like my wife who thinks a stock chart looks like a hospital heart rate monitor then you’ll be relieved to read this article. I too wondered what all those squiggly lines meant when I first looked at a chart.
The funny thing is that out of all the courses I paid for, not one of them showed me how to read a stock chart. I kind of just figured it out on my own. Now that I’ve learned it’s time to give back and share what I know.
Since stock options are derived or come from stocks, it’s essential to know how the price of the stock is behaving as this will greatly affect your option’s value.
Charting stocks is no different than doing science experiments in school. You collect data (stock prices) and then that data is plotted so you can see the overall big picture of what is going on.
Based on how the stock chart looks, you will devise a trading plan and trade in the direction of the trend.
Charting stocks can protect you from big losses and help you further your option trading gains. In order to fully take advantage of what the chart is telling you, you must first understand the basics of reading stock charts.
What is a Stock Chart
A stock chart is simply a graphical representation of the stocks price over a set period of time. The chart shows you at a glance how a stock has performed.
There are three 3 basic types of stock charts (bar, line, and candlestick) and depending on your trading style, each chart will serve its own unique purpose. Regardless of what type of stock chart you use, all three do nothing more than reveal the buying and selling patterns of the investors.
This is something that is hard to discern by reading stock quotes in the daily newspaper. That is why charting stocks has become so invaluable.
4 Key Areas of Every Stock Chart
There are 4 key areas you want to become familiar with when charting stocks:
Identification Section
Time Frame
Volume Bars
“X” and “Y” axis
For our example we will be using Potash Corporation.
Identification Section
Company Name: Potash Corporati
1000
on
Stock Exchange Where Traded: New York Stock Exchange “NYSE”
Trading Symbol: POT
Current Date: (top left corner)
Days Price Change: opening price, days price high, days price low, and closing price
Volume: how many shares of the stock were traded for the particular time period
Change: this is the day’s dollar change compared to yesterday’s closing price. The dollar change and the percent change will be listed.
Time Frame: the chart will display what time frame you are viewing (1 year, 6 months, etc.). It is highly recommended to change the time frame to one that suits your trading style. Looking at a 3-6 month chart is necessary if you have a short term investing plan, and 1-5 years if you have a long term investing plan.
Volume Bars: volume is often called the heart of the stock market. It’s a key indicator of supply and demand. By looking at the volume bars you can get a good feel for the strength behind the stock price movement. A stock moving higher on heavy volume is much more likely to continue climbing than one that is moving higher on light volume.
“X” and “Y” axis: the “X” axis is the bottom portion of the graph, running horizontally, and it flows left to right. It’s the portion of the graph that has the time frame that you are looking at. The left side is the past and the right is the present. We use the past as a reference, but we trade from the right side of the chart. We trade what we see now.
The “Y” axis is the right side of the chart, running vertically, and flows top to bottom. This portion of the graph has the price action.
Essentially for the beginner, charting stocks boils down to three things:
*You’re going to look at the correlation between a stock’s price and volume activity (as shown by the price and volume bars).
*You’re going to look at the chart and determine if the stock’s price has been trending up or down. If it’s been trending up, I buy call options. If it’s been trending down, I buy put options.
*You’re going to determine where the stock’s support and resistance levels are. Support and resistance are areas where the stock has had trouble proceeding past, or an area where the stock halts and changes direction.
A stock chart can provide you with a wealth of knowledge as long as you know and understand what you’re looking at. Basic charting knowledge combined with other stock indicators can immensely improve your trading skills.
Charting stocks has helped me find several profitable option trading opportunities, and it’s a skill that becomes easier over time.
By: Travis W.
Article Directory: http://www.articledashboard.com
So if you’re going to be involved in online options trading than learning about charting stocks is a must.
Are you looking for an easy way to learn stock options trading?
www.learn-stock-options-trading.com/ is an educational website that provides a self paced home study course for beginners.
The Polar F11 Heart Rate Monitor has been rated the best heart rate monitor by many of its users. It is the world’s only heart monitor that makes a custom workout program for you by telling you how often and how long you should exercise based on the goal you want to reach. The Polar F11 Heart Rate Monitor features the Keeps U Fit Workout Program which is like a personal fitness instructor, which is the primary reason users rate it the best heart rate monitor.
Since cardio routines have a specific target range for a particular amount of time to give results, the Polar F11 shows a bullet point for every 10 minutes spent in the target zone. It also features Polar’s OwnCal program that shows energy expenditures or calories burned in one exercise session or an accumulated total of several exercise sessions. You can set daily and weekly exercise goals in calorie expenditure, as well as target goals for the rates of your heart beats.
About Polar Fitness Monitors:
Polar, the maker of the first wireless ECG heart monitor in 1977, came out with models for different types of sports, athletes and training and features the best heart rate monitor, the Polar F11. They are a leading brand in monitors in the cardio fitness equipment industry.
Polar F11 Heart Rate Monitor Pros:
• The Polar Keep U Fit personal guidance system paces your development towards your fitness goals.
• The OwnCal feature tracks calories expended during your sessions, so it is easy to set daily and weekly goals and track calorie expenditure in a single session or multiple ones.
• The Polar fitness bullets show on display every 10 minutes spent in your target heart zone.
• It has large easy to read split screen display with backlighting
• It is water resistant to 100 feet
• It comes with two years warranty from the manufacturer
• The WearLink coded feature is a soft fabric transmitter that eliminates interference from other heart monitors, which comes in handy in a crowded gym
Polar Fitness F11 Monitor Cons:
• The Polar Heart Monitor is a wrist-watch style monitor that usually runs over $130, so there are cheaper monitors on the market.
• The product has so many features that it might be difficult for some users to figure them all out.
• It does not track vertical slopes and vertical speeds like models made for mountain biking, skiing and cycling. It has features to optimize walking, running and biking workouts, and is considered the best for those sports.
Conclusion:
The Polar F11 heart rate monitor is considered the one the best heart rate monitor for the money and it is an attractive, lightweight watch monitor. With a two year warranty from Polar, it has a reliable brand name and company to stand behind it. It is water resistant, so it could be used in water aerobics or swimming and the features for walking, running and biking make it great for the general exercise enthusiast.
Edward Price has had a keen interest in Health and fitness for many years. For more information on the Polar F11 or any one of the Polar Heart Monitors, visit his online resource site now.
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