Stocks Trading Long and Short and Stock Charts
In stock trading, there are two types of stocks trades, these are:
- Long (buy) - long is if the stocks trend is buy/bullish.
- Short (sell) - short is if the stocks trend is sell/bearish.
Buying/Long and Selling/short in Stocks
Both terms in Stocks, refer to things we do when open a stocks trade.
Buying Long - stocks term to use when buying and when opening a stocks trade.
Selling short - stocks term to use when selling and when opening a stocks trade.
Long - Long is another term used to refer to buying in stocks, If a stocks trader goes long it means that he buys the stocks instrument that is heading in an upward trend direction. When the stocks price is moving in an upward stocks trend the stocks trend is referred to as bullish stocks trend.
Short - Short is a term used to refer to selling of a stocks instrument that is going in a downward trend direction. When the stocks price is going downwards then it is referred to as a bearish stocks trend.
Basically the term, "selling short" can be refer to selling in the stocks markets. Selling short is used to transact a stocks instrument that is predicted to depreciate in value compared to another, when this stocks instrument is sold then it is the same as not holding value in this stock and holding the same value in another form against which this stocks instrument is traded against - mostly US Dollars.
Buy/Long
If the stocks price is going up we buy, this is referred to as going long - Therefore long is just another name for buy. When the stocks market stocks trend is going up it is referred to as bullish, this is when a buy stocks trade is placed. A bullish stocks trend is identified by drawing an upward stocks trend line on a stocks chart. The example illustrated and explained below shows a long/buy stocks trade signal.
Buy/Long
Sell/Short
If the stocks price pair is going down we sell, this is referred to as going short. When the stocks market stocks trend is going down it is referred to as a bearish. The example illustrated and explained below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward stocks trend line on a stocks chart. The example illustrated and explained below shows a short/sell stocks trade signal.
Sell/Short - Stocks Buy Trade and Stocks Sell Trade
Stocks Charts
A stock trading chart provides a visual representation of stocks prices (drawn on the y-axis) against time (drawn on the x-axis) for stocks. The movement of stocks prices is drawn on these stocks charts. The stocks chart can be drawn as candlestick charts like the one below or as line charts or bar charts.
Stock Chart - Candlesticks Charts
The three common types of stocks charts used in stock trading are:
- Candlesticks Charts
- Line Charts
- Bar Charts
These 3 are explained in the topic Stock Chart Types.
Stock Platform
This is the stocks software that is provided by a stocks broker to help stocks traders place their stocks transactions. Once you download and installs this stocks software on your computer you can then begin to trade in the Stocks market. All stocks transactions are executed through this stocks platform. If you want to learn a stocks platform, MetaTrader 4 Stock Platform is a good stocks platform to start with.
To set these stocks orders, open MetaTrader 4 Stock Platform, open a "chart", right click on the "chart", select "New Order", then select the stocks order either sell or buy as shown below. (Keyboard Short Cut Keys - Press F9 Key)
Setting Buy Long Stock Order and Sell Short Stock Order on MetaTrader 4
