Stock Charts

Written by Michael Federico
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There are a number of different stock charts that can be created to make things a little bit easier for the online investor. There are traditional bar, line, and candlestick charts that allow a person to chart the growth of a stock, mutual fund, or index. Everyone is familiar with these types of charts, so they are easy to read and they make it possible for a person to quickly see how a single asset is performing.

A performance chart lets a person compare the activities of any set of securities over a set period of time. Most software and online sites will have performance charts that can be broken down into days, weeks, months, quarters, and even years. This allows a person to gauge the consistency of certain securities and to recognize an asset that has immediate potential for growth. There are also charts that give an overview of how stocks from a certain industry or exchange are performing.

Using Stock Charts for Portfolio Management

Charts can be invaluable resources when managing a portfolio. An online trader has to be aware not only of what his assets are doing, but also of what is happening on the market as a whole. Charts can, in essence, quickly describe what has happened in the past and what is happening in the present. They cannot predict what will happen in the future, but they can take some of the guesswork out it.

When signing up with an online trading service, a person should make sure he will have access to a variety of stock charts. When dealing with a large number of assets, it is important to have a way to view a lot of data in a simple, straightforward manner. Without that luxury, it will be very difficult for a trader to make good decisions.


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