Stock Markets Heading Higher?
Stock Market Heading Higher?
After going nowhere very slowly for the last two months it seems that the stock market may finally be heading higher. The S&P has broken through resistance at 1150 and there are people who think that it could now put on another 15% or so before the end of the year, on the UK FTSE the significant level is 5654.
It may therefore be the right time to get ready to buy stocks again, for short-term traders that is who look at the charts to give them a sense of direction.
Stock trading beginners would do well to learn about the fundamentals of technical analysis, before taking the plunge, as professional stock trading experts base their short-term decisions largely on what they see in the charts to determine whether it is time to buy stocks. As we enter a bull market it is important to be buying stocks on the dips rather than selling them on the rallies.
There have been many predictions that the markets would crash again last October and November but it appears that these predictions were wrong. The markets now seem to be headed back up and even if they do move down this will only represent a chance to buy stocks on the dips.
It is also important of course to set stop losses to ensure that any stocks and shares you buy turn out to be mistakes then at least you will only lose around 5%. It is in fact ane ssential part of any stock trading strategy to ensure that you preserve your capital and not get wiped out by one or two bad trades.
