The Secret Factor That Helps You To Spot Stock Market Trends

When you invest in the stock market, you want to make sure your investment comes back with a nice profit. That is, after all, the whole point of investing in the stock market. When you watch a certain sport such as hockey, you can begin to see patterns in the players, the games and where it will all fall into place in future games and even at the end of the season. If you have a left handed player, you will find that they will tend to try to get the puck in the net at a certain angle. A good opponent would pay attention to this and take advantage of it by swinging his stick towards the puck in a specific angle to get the puck away from his opponent before he has a chance to hit it.

The stock market actually has some patterns and trends in it that you can recognize if you pay close attention. If you know where the stock market is headed, you will be much better off than if you were not paying attention at all. Investing in the stock market seriously is not about just trying to get lucky. It is about calculated risks that will get you a return on your investment.

What is the price and what is the volume? You need to know this information. When you know these two things and put them together, you will be able to see the larger picture - where the stock market is headed. Are there more sellers in the market or more buyers in the market? Knowing the volume of the market and the price of the market can tell you how many people are involved and where it is headed.

The secret indicator you should pay attention to spot stock market trends is the daily sales volume. When it is high, and prices are rising, it is the sign that the market is rising in a strong trend. However, a high volume with falling prices means that the market is decreasing and will continue to do so. If prices are going up or down on low volume this means that investors are not keen to commit to the stock market at that price and market makers are moving the price to try to encourage trading activity.

Just keep your head in the stock investing game, you will be able to spot the latest market trends to keep your investments profitable remember the trend is your friend. You never want to be short in a rising stock market or long in a falling stock market.

By: Roger Overanout