Previously, we have learned the simple way how to make money in stocks by using trendline. Before move to our current hot topic (which is another way to utilize the trendline), first, let’s refresh our mind by summarizing what we have discussed in the previous article. As mentioned in previous article, we have learned how we can use the stock chart’s trendline to decide whether it is the best time to buy or to sell the stocks.
In previous article, we have learned how to draw the trendline for stock trading which is a useful tool to know the current stock market trend. As I have also mentioned, knowing the stock market trend is very essential for stock trader – especially for retailers – to gain optimum profit in their stock trading venture. In short, we can make money in stocks by using trendline based strategy. Indeed, this trading strategy is quiet simple which are “buy if the trend is up, sell if the trend is down, and stay away if the trend is nontrend (sideways).
As I have mentioned before, the stock market trend is everything in stock trading since the trend can tell us in which cycle the stock market currently. For your information, knowing the stock market cycles is a must if want to gain maximum profit from the market. I have discussed about three available stock market trend. However, I haven’t yet discussed in detail about how we can know the current stocks market trend exactly.
Is it the time to buy or to sell the stock?
Will the stock’s price be up?
Will the stock’s price be down?
I bet these questions above are often to be asked by the stock traders or investors. It is very natural since the answer will determine whether the stocks trading/investing is done in the right way to gain intended profit. Technical Analysis (TA) is presented to try to answer the big questions above so stocks traders/investors can do their stock trading activities in the right way.
We cannot be a blind man in our stock trading (or stock investing) if want to do it in the right way and gain enough profit. Being blind man means that we do the stock trading just by using our feeling alone (or plus some rumors if available). Yeah, it mustn’t be done if do not want to do the meaningless stock trading – just to waste both or our money and time. Therefore, a stock trader/investor must know about Fundamental Analysis (FA) and (or) Technical Analysis (TA).
So far, we have learned the basic of Stochastic Oscillator (which includes the formulas) as well as the Stochastic’s buy signal, sell signal, overbought signal, and oversold signal. This knowledge is surely more than enough to finally make money in stocks with Stochastic. However, since the knowledge is purely theoretical, it would be better if there is the practical tips. Yeah, it would be great if there is a real example how exactly we can utilize the Stochastic in real stocks trading so we can make money in stocks.