Many people are intimidated by the stock market, and although they would like to use it as a part of their overall strategy for building lasting wealth, they are worried that they just don't have the expertise necessary to navigate its dynamic landscape successfully. It's important for new investors to have a healthy fear of the stock market, as a trader with too much excitement and too little caution usually ends up failing to meet their trading and portfolio goals. The important thing to concentrate on is the art of stock chart analysis, which can be helpful in keeping your decisions on track.

The thing that most traders don't realize about stock chart analysis is that it is something that one must engage in on a daily basis, not just every once in a while. If you think that you can listen to some trading advice on a podcast on Monday, and still have a good idea what the market is doing on Thursday, you're in for a surprise. The temperament of the stock market can change by the hour, and if you don't have the ability to watch and interpret the stock charts at least once a day, you're going to be making important decisions in the dark.

Another thing that most people don't realize about stock chart analysis is that over time, it actually gives an investor the ability to see into the future of their securities, and devise an informed opinion about whether or not the current trend will continue, or whether there is a reversal in sight. Knowing these things before they happen is priceless for a day trader, as it can keep you from selling too soon, or holding on to a stock long before it has reached its most valuable level.

One of the most important parts of stock chart analysis for any technical analysts is the chart pattern. More than just monitoring market trends as they move up and down, the chart pattern allow the analysts to understand information about the pressure being exerted on stocks by economic influences and public opinion. You can monitor volume levels, as well as spotting levels of support and resistance that might stymie your plans for future profitability. If you are the kind of trader that would rather close the day out with a profit that hold on to a stock for twenty minutes while it's losing money, chart analysis is one of the most important skills you can have.