Line Charts for Technical Analysis

Technical analysts use three types of charts: line charts, bar charts and candle-stick charts. Line charts typically connect a stock's closing price into a single line, during a designated period of time. For example, look at the figure below.The daily line chart of a certain stock illustrates the daily closing prices of that issue from October 2011 to February 2012, drawn into a single line.

Fundamental Analysis Versus Technical Analysis

Fundamental analysis and technical analysis are the two major methods of examining a publicly traded company to determine the health of its stock. Fundamental analysis is like taking an "x-ray" of a company. It examines the internal financial fitness of an organization and tells us how strong it is. Fundamental analysts focus on supply and demand levels of the products and/or services the company produces. 

Spin Offs: What it Means?

Spin offs is usually referred to as an area of discarded corporate refuse. Spin offs can take many forms but the end result is usually the same. A corporation takes a subsidiary, division, or part of its business and separates it from the parent company by creating a new, independent, free-standing company. In most cases, shares of the new "spin off" company are distributed or sold to the parent company's existing shareholders.

Two Reason Why Open Margin Account

There are two reasons to open a margin account. First, as you become more experienced, the margin gives you extra buying power. Thus, you're "leveraging" your money, or making more money (we hope) than the interest on the loan costs you. Second, the only way you can sell stocks short is to open a margin account. In a volatile market, selling short can reap big profits.