Then around 2012, Apple noted that its profit margins were significantly decreasing, despite a growing smartphone market. Most strong companies can rebound from hits like this, but not all can.įor those who don’t know, right around this time Apple experienced a few major shifts:įirst, its longtime CEO, Steve Jobs, resigned in 2011. If you saw something like this happen, I’d urge you to find out what’s going on with the company. News comes and goes, but when news coincides with a dramatic shift in the trendline, it’s something to pay attention to. This is where your trendline comes in handy. For instance, Apple as a company really took off from 2009 to 2012.īut what happened from 2012 to 2013? The stock began to sink - at one point, shares were down more than 40%! In fact, the trendline should lead you to dig further. You should be using this piece of the stock chart merely to see what’s going on. This is that blue line you see every time you hear about a stock - it’s either going up or down, right? While the trendline seems like common sense, there are a few things I want to call out so you can understand it in a little more detail.įirst, know that stocks will take huge dives and also make huge climbs. Don’t react to large drops or huge gains in a positive or negative way. Here are the four key data points you need to understand in order to fully leverage the power of a stock chart. Key concepts when learning how to read a stock chartĪ stock chart becomes particularly useful when you know how to read its information and decipher what it’s showing so you can make more accurate predictions about how the stock will perform in the future. Now let’s dive into the different pieces and parts of the stock chart so you can begin to read one like a pro. I bet you wish you would have invested in Apple in late 2008/early 2009! So here we’re looking at the last 15 years of Apple’s stock. I’ve also taken the liberty of filtering to the last 15 years, which you can easily do by changing the date range near the top of the expanded chart. Next, click the ‘Full screen’ link in the top right corner of the chart to expand it. In this case, I’ll search for AAPL, which is Apple’s ticker symbol. It identifies the company on the stock exchange. If you don’t already know, the series of letters after the name of the company is the ticker symbol. For the sake of this article, let’s use Apple as an example stock, as displayed on Yahoo! Finance. Now let’s take a look at a typical stock chart. More advanced stock charts will show additional data, and by understanding the basics you can pull out a lot of information about a stock’s historic, current, and expected performance. Simply put, a stock chart is a graph that shows you the price of a stock over a specific period of time - for example, five years. Loan Payoff Calculator: How Quickly Can You Repay Your Loan?.Auto Loan Interest Calculator: Monthly Payment & Total Cost.How To Pay Medical Bills You Can’t Afford.Best Car Insurance For College Students.Should You Get Home Contents Insurance?.How Much Should You Contribute To Your 401(k)?.How Much Do You Need To Have Saved For Retirement?.The Beginner’s Guide To Saving For Retirement.Investment Calculator: How Much Will You Earn?.How To File A FAFSA As An Independent Student.Best Companies For Student Loan Refinancing in 2022.Best Personal Loans For Excellent Credit.Understanding Overdraft Protection and Fees.Balance Transfer Calculator: How much can you save?.Credit Score Calculator: Get Your Estimated Credit Score Range.All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.
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