People who are part of the stock market and investing are always talking about how they could really use a psychic to help them pick stocks. Picking stocks is one of the most time consuming and grueling parts of being an investor or stockbroker. Most of their days are spent trying to predict the outcome of future days with the market.
Many people do not believe that investing is just about guessing what a stock will do. To most people investing is about watching the market and paying attention to each and every move. By paying attention to all aspects of the market it is possible to reap the biggest rewards possible.
Usually the stock market and individual stocks will move together. When a stock is steadily growing it is usually during a time when the market is growing and this is called a bull market. When a stock is declining the market may also be declining and this is called a bear market. Of course the market will have its ups and downs but the average trend will flow either up or down.
In order to determine what direction the market is going it is necessary to have two pieces of information; price and volume. You will need to have the prices of the trend of prices of stocks. The volume is the number of stocks that are currently being traded.
How to Determine Price
In order to determine price stockbrokers and investors will look at three major indicators that include: The Dow, S