Stock Chart Basics

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

  1. Open weekly chart.
  2. Mark support.
  3. Switch to daily.
  4. Confirm with volume.
  5. Look at companies like Apple and Amazon across energy.
  6. 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.

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