Supply and Demand

If you're just about to start and want to venture into trading to make money, then at least remember to impart this in your system.

Know the major support and resistance levels in your chart. By this you will be able to picture out where most of the traders have reacted in the past and serves as your guide.

Resistance is where a certain level where price reached its peak then starts to dive, which means sellers are more dominant than buyers.

Support in the contrary is where a certain price reached its bottom and starts to move up, which means more buyers are into play and overwhelmed the sellers.

It's no rocket science it's all about supply and demand, more supply (resistance) tends to make the price down and vice versa more demand (support) tends to put the price higher.

Just remember that if a resistance level is broken it becomes your new support, whereas when support is broken it becomes your new resistance.

That's just a part that you must learn to give you idea where to buy (near support) and where to sell (near resistance).

Happy trading!