| One of the key elements to succeed as a trader is | | | | 3. Volume |
| your ability to recognize stock trends. When you are | | | | To determine a trend you also need to have |
| able to recognize the major trends in stock market | | | | information of the stock market volume. The volume |
| trading, you will better know when to sell stocks. | | | | tells you the amount of stocks being traded and |
| Here are some general ideas to identify the major | | | | whether there is movement in the stock market. |
| trends in stock market: | | | | 4. Trends |
| 1. Bull market & Bear market | | | | When you put price and volume together you will |
| Most of stocks, if not all, move with the market. It | | | | see whether there are more sellers or buyers in the |
| can be in a bull market or in a bear market. | | | | stock market. |
| Bull: In a bull market most stocks will steadily grow | | | | Up trend: In cases when you have both high volume |
| and indicates the presence of more buyers than | | | | and high price, these indicate an up trend in stock |
| sellers. Those who buy stock in a bull market are | | | | market. Based on this, you may decide to buy the |
| called bullish trader. | | | | stock. |
| Bear: In a bear market most stocks will steadily | | | | Downward trend: In cases when you have high |
| slowly lose value and indicates the presence of more | | | | volume but low price, these indicate a downward |
| sellers than buyer. Those who sell stock in a bear | | | | trend in stock market. Based on this, you may decide |
| market are called bearish trader. | | | | to sell the stock. |
| 2. Price | | | | False signal: Quite often, when a stock move up or |
| To determine a trend you need to have information | | | | down it seems for you like a change in the trend. |
| of the stock market price. The price tells you about | | | | However, if you look further at the volume you may |
| the direction of movement of stocks and is | | | | see that there is not enough volume for a stock to |
| determined by knowledge, hopes, fears, and | | | | move up or down. In these cases, you should not |
| expectations of all those people who already own | | | | expect a trend change in stock market, but a false |
| the stock or might be thinking of owning it. | | | | signal. |