Have you taken the plunge and recently investing in the stock market? Many new investors say that there will never be a harder purchase to make than the first time you decide to buy a stock. Not only do you have to commit to researching the financial virtues of the company in which you invest, you also have to be ready to monitor the price fluctuations that the stock undergoes, looking for good opportunities to sell it at a profit, if that’s your style of trading. If you’re going to be a successful trader, you have to learn how to read the daily stock market report, so here are some tips for doing that quickly and efficiently.
The first thing that you have to know is where to find the stock market report. Although you can look for market segments on television stations and news websites, these are usually little more than real time tickers full of complicated symbols and acronyms that you’re probably not yet familiar with. These tickers are designed for experienced investors, and until you’ve developed the skills needed to absorb information this quickly, you’re going to have to depend on newspaper reports or those housed on any one of thousands of market websites.
Before you sit down to read the stock market report on any given day, make a list of acronyms that correspond to the stocks in your portfolio that you’re interested in monitoring. Any time you make a trade and acquire a new stock, you should update this list with the new acronym. Save the list as a file on your computer if you’re going to be reading the reports online, or and keep it near your desk or table when reading the report in the paper.
The first thing you should do when you sit down to read the stock market report is to review the closing prices from the night before for each one of your holdings. On most reports you can find this number listed immediately after the stock symbol. Checking this number every day will help you to compare the strength of that stock in relation to the others you’re holding, as well as to the rest of the market. When reading stock market reports, it’s also important for you to compare price changes in different indexes and industrial sectors to determine overall strength in the economy.