How To Trade Stocks: Learn To Trade

One of the most important aspect of how to trade stocks effectively is the catalyst. Every time I mention the catalyst, people want to talk about something else. Why? A trader buddy of mine said well Lance, I just read the chart and follow that. What?! No!

How To Trade Stocks For Beginners

If you want to learn how to trade stocks for a living then you need to know how to buy stocks that are likely going to keep going higher because a catalyst is pushing them higher.

You can be the best chart reader in the world. You can have an account on and you can spend years studying every technical indicator ever invented. You can subscribe to John Murphy, the father of modern day technical analysis, and learn all about how to read a chart and how to use various technical indicators. You can master the MACD, volume, stochastics, Bollinger Bands, ADX... every indicator ever invented! But if you don't know what the catalyst is, you will find it very difficult to make money stock trading online.

Here's what most traders don't understand. You can know absolutely nothing about how to trade stocks online or how to read a stock chart or even how to use any technical indicator. If you are good at determining catalysts, you can make a fortune on Wall Street. In other words, you can make a lot of money with online stock trading and know nothing about how to read a chart, if you are good at finding catalysts. The opposite can not be said. You can be the best chartist in the world but if you don't know how to define catalysts, you will find it difficult to make money stock trading.

Have you ever wondered why your trading, no matter what chart pattern you use, breaks down? You know, when the chart looks great and you buy and the stock still goes against you? The reason is that you don't understand the importance of the catalyst. No computerized chart in the world is going to give you the catalyst. In order to determine the catalyst, you must be human. This is why your stock trading keeps breaking down on you. You are following computers only that are not consciously aware. You will never learn how to trade stocks online successfully without understanding how to find a catalyst.

A catalyst is news or an event that can change a trend in a stock. A catalyst is the engine that will drive a stock either up or down.

Catalysts change the perception of a stock's worth or value. A catalyst is often referred to as a story. Stocks with strong catalysts are called "story stocks". A catalyst can be a lot of different things: earnings releases, lawsuits, FDA rulings, management changes, new products, product recalls, and even marketing campaigns.

How To Trade Stocks After Hours