Today Mark Roy, the financial success known as Shinobi Trader, is going to teach us how he analyzes the markets.
The first thing I look at in a stock is
what it has been doing over some period of time. You can do this by looking at charts, which are available from your average broker and for free at places like cnbc.com, marketwatch.com or stockcharts.com.
On a chart, you simply want to know if your stock has been going up or down or sideways. I trade more than once a month, so I like to look at what it has done month over month.
The next question I ask is if that trend will reverse or continue. This is where you want to read articles about your stock and, more importantly, talk or ask knowledgeable investors about their thoughts. There are many technical analysis tools that you can use that help determine if a trend is over or going to continue. In my analysis, I like to use RSI and Stochastics to determine a trend’s strength. You can find out more about these through sites like babypips.com and watching videos of how they’re used on youtube, such as this:
These are just a few resources that fit my investing style, but make sure to do your own due diligence and most importantly, have fun!!
Mark Roy is an independent trader with over 5 years of investing/trading in the equity/options/futures/forex market. He is the Technology Sector Manager as Kennesaw State University’s Student Managed Investment Fund and a Trading Coach at EZ Trade Academy. He also writes about trading/investing at shinobi009.blogspot.com.