Market charts are the story of the financial world. By studying them, traders can see how to buy Kinder Morgan buyers and sellers interact.
Step 1: Choose a chart type
- Line charts illustrate varied levels of insight.
- Candlesticks highlight open, high, low, close and give patterns like hammer.
Spot the path
- Bullish move = rising peaks and higher lows.
- Downtrend = lower highs and lower lows.
- Range bound = consolidation.
Step 3: Support and resistance
- Round numbers can act as ceilings.
- Old lows act as floors.
- Traders plot these zones to time entries.
Confirm with tools
- Stochastic shows strength.
- Moving averages smooth trends: 200 SMA.
- Volume validates breakouts.
Step 5: Example routine
- Open weekly chart.
- Mark support.
- Switch to daily.
- Confirm with volume.
- Look at companies like Apple and Amazon across energy.
- Decide risk.
Main lesson
Reading charts is about focus. Too many tools cause confusion. Stick to structure and learn daily.
—
Market Cap 101 for Investors
Market cap is the product of price and shares. It indicates how big a company is in the market.
Categories
- Tiny cap: under 300M.
- Small cap: around a billion.
- Medium cap: moderate.
- Big cap: tens of billions.
- Mega cap: hundreds of billions.
Examples:
- Tech: Google.
- Energy: Shell.
- Finance: Visa.
- Healthcare: Pfizer.
Uses
- Volume.
- Stability.
- Portfolio balance.
Limits
- Does not include liabilities.
- Enterprise value is better.
- Different fundamentals.
Shifting metrics
- Issuing new shares increase.
- Repurchases reduce shares, boost EPS.
Practical guide
1. Mix large cap safety with small cap growth.
2. Spread across finance.
3. Match with risk tolerance.
Key insight
Market cap is a shortcut, but always combine it with enterprise value. It shapes building a balanced portfolio.