Part 5 - Understanding
statistics
You have now
become somewhat familiar with how the stock market works, and
you understand to a point what is involved in trading on the
Foreign Exchange Market. Now, you would like to know how
to gauge market trends in order to profit from your business
ventures on the open market. We are no longer discussing
penny stocks and playground games. You want the real
goods.
The name of the
game is statistics, and the first rule is that you must be
aware there is no such thing as a sure thing on the stock
market. While you can never be 100% sure at any given
time of the next move that will be made on the market as a
whole, being able to read statistics and interpret them will
place you ahead of the pack in regards to “guessing” what will
happen next.
Investing is a lot
like gambling. If you can keep track of the cards that
have already been played, you are more informed, statistically,
regarding what is likely to be dealt next, meaning you can
place abet with greater insight than someone who has no clue
what has already been played. With the open market, if
you have information as to what has already occurred over the
past few days, months, or even years, you are again placed in a
better position to more logically conclude what will happen
next. You simply learn the pattern and follow it to the
end, reaping the financial rewards.
Charts And
Chartists
Wait, did you
think you were going to have to research and map out the
market’s past all by yourself? Of course not! There
are people who get paid to do that sort of work. They
monitor the market hourly, daily, weekly, monthly, and yearly
so that they can provide big-time traders with the same
knowledge mentioned before. The more an investment
company knows about the market, the more money they can
make. The same is true for stockbrokers. They make
money when you make money, and they want to do the best they
can to make sure that you make intelligent
decisions.
The best part of
this is that you have access to the same information as these
VIP clients. Chartists, who are essentially market
analysts that publish their findings in easy to read charts,
produce what is referred to as a candlestick chart. These
charts are basically a combination of a line graph and a bar
graph that show the trend of various stocks, indexes, or other
interests over a specified period of time. Therefore, you
can easily determine if the commodity is on an uptrend or if it
is taking a downturn, when the last major change occurred, and
how long it is predicted that the stock or bond will continue
on the current path.
This concludes our
5 part ecourse on "Insider's Guide To Forex
Exchange".
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