Profitable Approach to Stock Market

The forces of demand and supply results from two powerful emotions: demand results from the hope of profits;supply results from the fear of loss. When these two opposing forces are not in balance,stock prices move up if the demand side is greater and down if the supply side is greater.
A chart showing the recent history of how these forces have interacted to change the price of the stock is a tool for analysing what has been happening to the stock price recently and what may happen to it in the future. If you can understand what is happening to a stock price, you increase your chances of taking the right actions at the right time. For example, when you can see that the stock is starting to rise, you can buy it. If it continues to rise, you hold it.If it stops rising, you sell it or hold it until you can project what direction it will move next. If it starts to fall, you sell it.