QATW – I Don’t Know Anything!

Have you checked out any of the TWI created stock trading educational material?. I receive a lot of good questions every day. Below are some of the most asked or best questions I have come across.

To get your question in now, use the dedicated contact page. You will not have to wait for the next edition to receive your answers, but the best or most popular will be brought here for others to see.

Q: What is the importance of volume?

A: When it comes to a stock chart, volume simply backs up how significant a move is. For example, we will look at a breaking of a support line. If the volume is weak, then the break, might not actually be a week because there is no substance behind it; however, if volume is higher than normal, then that means the stock is likely to head even lower.

Q: Where can you find a good earnings calendar?

A: It seems like Yahoo is good for one thing – Yahoo Finance Earning Calendar

Q: How do you know what moving average to use?

A: The length of your moving average depends mostly on the time frame you plan on trading (i.e. the longer you plan to hold the stock, the higher your moving average number should be); however, the most popular are the 200 and 50 day moving average. Learn more about how to use moving averages.

Q: How do you know when stock has broken out?

A: The simple answer is when a stock’s current trend has broken, and, on that move, volume is stronger than normal. There are various forms of break outs that can happen (i.e. bounce off support, break of trend line, etc.). You can learn more about how to read break out in Chart Pattern Manifest.

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