Price Action Basics

Price is determined by demand and supply. Liquidity and sentiments play key role in markets. Fundamental analysis requires tonnes of information much of which is not available to retail investors. It is preferred by people to generate long term wealth. Technical Analysis is more happening thing now. it is useful for traders to make profits over a short span. Top 100 stocks are less risky for trading as the market capitalization is high and difficult to manipulate. Technical indicators are useful in trending markets and trending stocks. Volume and volatility help traders in achieving targets for trade and profits. Line charts are useful for long term where as candle sticks are very informative and useful for shorter period. New, Analysis, earnings etc are data points and are already reflected in recent price movements. they are reacted upon by impulsive traders. Disciplined traders can have a strategy only for such events, though they normally avoid such high volatile movements. Such information come to retailers much later than insiders. It is important to know when and how to trade and more important to know when not to trade.