How to Become a Better Stock Trader

A stock watchlist along with their performance metrics that helps a stock trader monitor tickers.
How to Become a Better Stock Trader | Blog |

Do you trade stocks, options or forex?

What method have you found success in?

There are many different principles when it comes to investing in stocks.

Whether scalping, day trading, swing trading or long-term trading, you must have a strategy.

There isn’t just a need to understand fundamental analysis.

You also need to understand technical analysis.

Today, we will review a few techniques that could be helpful.

Let’s get started.

Using Indicators

A stock trader checking the chart for a ticker using candlesticks on his laptop.
How to Become a Better Stock Trader | Blog |

After you’ve reviewed the fundamentals of a company, if you’ll be trading, its time to use a few techniques of technical analysis.

Indicators are tools that can be used to gain better insight on whether the current sales price of the stock, option or currency is cheap or expensive.

  • Price Per Earnings Ratio (PE) – Knowing the stock’s current price per earnings ratio compared to it’s competitors, in addition to the stocks PE history, can be very helpful in understanding if the stock is currently cheap or expensive.
  • Volume Difference – The current trading volume compared to the average trading volume is a key indicator. My preference is to find stocks trading at twice the average volume or more.
  • Average Trading Range (ATR) – Knowing the range in price variation each day can help you to gage your profit capability.
  • Relative Strength Index (RSI) – The RSI can help you indicate where the current price is based upon being over-bought, over-sold or somewhere in between. This can be used for insight on when to enter or exit a position.
  • Simple Moving Average (SMA) – The simple moving averages are key indicators that can help you identify reversals and trends.
  • Support & Resistance Levels – Identifying points of support and resistance allow you to identify trends and patterns. Identifying these levels can help you understand why a reversal may happen and when a continuation of momentum holds more value.
  • Chart Patterns – Chart patterns allow you to better understand potential future behavior of the stock’s price.
  • Candlestick Patterns – Understanding candlestick patterns can help you better understand potential reversals and continuations of a trend.


Financial notes, pen, pencil, coffee and a keyboard to a computer on a desk, to determine if a stock trader wants to invest in a company.
How to Become a Better Stock Trader | Blog |

These could be the indicators you can implement into your trading strategy.

  • If you use more than what is indicated here, comment what you’ve found success in.
  • We would love for you to join our community so we can all help each other build knowledge of becoming better investors.

More knowledge brings more confidence, and more confidence brings growth.

Thanks for joining us faithful readers – future leaders.

Please stay positive and continue to strive for growth.

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Comment what indicators or strategies you’ve found success in.