Mark Padilla
OP
Trader-101
:
thanks! do you have any old charts you could link to show me key points to look for when investing into a stock to determine if it has potential?
Trader-101
Mark Padilla
OP
:
I'll simplify it for you the yellow that you see in that's the Bollinger band it comes with three lines think of the top line as your ceiling once you get past that top line and means it's over bought that middle line that you're by area if it crosses the middle line then it's ready to be bought now the bottom line that tells you what your Florida basically your support so if it goes beneath that line now it's time to buy it's oversold and then the other one good to use with a bowl of Japan is to RSI the RSI gauges whether a stock is overbought oversold as well if it goes above 70 good indication that it's overbought and it's time to liquidate now if it's under 30 that's when it's time to buy that means it has been oversold its prime to buy get in now
Mark Padilla
OP
:
I swear you make things so easy to understand! im going to write this all down for reference. Do you have more information on volume and turnover? and what floating means in regards to the market is it important to keep track of?
Trader-101
Mark Padilla
OP
:
While the trading volume can tell us about the liquidity of a stock, the turnover ratio indicates how stable or volatile the value of a stock is. ... However, a high turnover ratio indicates that relatively few shares are available, and a sudden increase in demand could have a considerable effect on the value of a stock.
Trader-101
Mark Padilla
OP
:
put it simply enough the higher the volume closer to the market cap it is two less shares that are available to buy and means if all the shares off the table it's going to create a situation where it's supply and demand it's going to be hard to do transactions because there are nobody wanting to sell and everybody's wanting to hold them now with the turnover but that's going to tell you is how Paula tell the markets going to be on that particular stock and how it could affect the stock price think of it like this the reason it gets so volatile is because that means it's highly traded that's a good indication that there's either bought straighten it with the algorithm program worth being date rated quite a bit if the volume is high but the turnover is very close to the volume I mean people are buying it they're holding it waiting for it to go up now I to turnover is massive the higher than the volume that means people are buying pulling their profits and jumping back in take a look at these two just got a break samples
Trader-101
Mwey
:
well it's a double-edged sword it's good and bad yes people are highly trading it but also that determines the liquidity of that stock for example if all the shares are off the table it's going to be hard to sell it so the liquidity of a stock is very important does it matter how much money you make if you can't sell it
Trader-101
Mwey
:
but yes it is a good way to gauge whether people are highly trading it day trading it or whether they're buying and holding it or they could be selling off 80 gauge all of it and help you understand whether you should get out of a trade or not the higher the turnover the more volatile the stocks going to be
Trader-101 : these would be better options for you to take a look through them I've got more I'll be posting later
$Opko Health (OPK.US)$
$Tocagen Inc (TOCA.US)$
$Assertio (ASRT.US)$
$GenMark Diagnostics Inc (GNMK.US)$
$Altimmune (ALT.US)$
$SELECTA BIOSCIENCES (SELB.US)$
Mark Padilla OP Trader-101 : thanks! do you have any old charts you could link to show me key points to look for when investing into a stock to determine if it has potential?![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Trader-101 Mark Padilla OP :
Trader-101 Mark Padilla OP : I'll simplify it for you the yellow that you see in that's the Bollinger band it comes with three lines think of the top line as your ceiling once you get past that top line and means it's over bought that middle line that you're by area if it crosses the middle line then it's ready to be bought now the bottom line that tells you what your Florida basically your support so if it goes beneath that line now it's time to buy it's oversold and then the other one good to use with a bowl of Japan is to RSI the RSI gauges whether a stock is overbought oversold as well if it goes above 70 good indication that it's overbought and it's time to liquidate now if it's under 30 that's when it's time to buy that means it has been oversold its prime to buy get in now
Mark Padilla OP : I swear you make things so easy to understand! im going to write this all down for reference. Do you have more information on volume and turnover? and what floating means in regards to the market is it important to keep track of?
Trader-101 Mark Padilla OP : While the trading volume can tell us about the liquidity of a stock, the turnover ratio indicates how stable or volatile the value of a stock is. ... However, a high turnover ratio indicates that relatively few shares are available, and a sudden increase in demand could have a considerable effect on the value of a stock.
Trader-101 Mark Padilla OP : put it simply enough the higher the volume closer to the market cap it is two less shares that are available to buy and means if all the shares off the table it's going to create a situation where it's supply and demand it's going to be hard to do transactions because there are nobody wanting to sell and everybody's wanting to hold them now with the turnover but that's going to tell you is how Paula tell the markets going to be on that particular stock and how it could affect the stock price think of it like this the reason it gets so volatile is because that means it's highly traded that's a good indication that there's either bought straighten it with the algorithm program worth being date rated quite a bit if the volume is high but the turnover is very close to the volume I mean people are buying it they're holding it waiting for it to go up now I to turnover is massive the higher than the volume that means people are buying pulling their profits and jumping back in take a look at these two just got a break samples
Mwey Trader-101 : so high turn over is good because it's profitable and people buy and sell like crazy right?
Trader-101 Mwey : well it's a double-edged sword it's good and bad yes people are highly trading it but also that determines the liquidity of that stock for example if all the shares are off the table it's going to be hard to sell it so the liquidity of a stock is very important does it matter how much money you make if you can't sell it
Trader-101 Mwey : but yes it is a good way to gauge whether people are highly trading it day trading it or whether they're buying and holding it or they could be selling off 80 gauge all of it and help you understand whether you should get out of a trade or not the higher the turnover the more volatile the stocks going to be
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