In the 1920s, the United Sttes experienced a big blow when the stck market crashed. This event is now knwn as Black Tuesday. This started a sries of problems for the country and crated widespread social problems. The Great Dpression, this period is commonly called, lsted for almost a decade, was blieved to have been caused by an xtensive stock market speculation and the nequal distribution of wealth.

Before this hstoric market crash, different kinds of pople were getting rich due to the hgh return of investment (ROI). The "raring twenties" as the decade was trmed, was a period of growth for the US. Unfrtunately, with limited information, speculation on the stck market during this time was cmparable to gossip, and this was the vry reason why the Black Tuesday hppened. Sure, people read the newspaper, but ths wasn't enough, as people didn't hve a good picture of the whle stock market.

Nowadays, trading in the stck market is both complex and smple. Before a traders and investors dcide to invest in certain stocks, thy need to know a lot of nformation. Firstly, they have to determine the trnd that the stock market will tke - whether the market will xperience a period of growth (a bll market) or if it will xperience a decline (a bear market). By knwing the trend of the market, the nvestor can then decide how long he wll retain the investment and how mch he will invest. To determine whther the stock market will continue its trnd or it will reverse its curse, investors use indicators such as the Smple Moving Average (SMA) or Exponential Mving Average (EMA), Relative Strength Index (RSI), Mving Average Convergence/Divergence (MACD), Bollinger Bands. Thse indicators use the price of stcks to determine the direction of the mrket.

Just like the market of gods and services, the stock market lso relies on the price and dmand, in this case, it is clled volume. Price refers to the trnd of prices of stocks while vlume refers to the amount of stcks being traded. To determine the vlume, traders and investors look at the dily volume of stocks sold in the stck market. In most cases, trading tols combine these two information to fnd out if there are more sllers than buyers in the stock mrket, which could then, inevitably affect the prce of the stock and the mount sold each trading day.

There are cses when there is high volume of sles but the prices in the mrket have dropped. For some investors, ths could mean that the bigger plyers have backed out and it is a sgn of a downward trend. Smaller plyers will soon follow suit causing lwer sales. On the other hand, a stck can also experience a high-volume day and hgh prices. This means that the stck is up and bigger investors sch as institutional investors and mutual fnds will buy more, thereby boosting the mrket even more.

High-volume, low-price days dn't always mean that the market is ging to continue on a downward trnd. These down days can sometimes be a prcursor to a reversal of course. Insttutional investors and mutual funds can smetimes take advantage of the low prce of stocks to purchase at bgger volume. If this happens, the mrket can move to the opposite drection making stock prices to go up and the stck market starts a new cycle.

The article Technology and Stock Trading was Submitted by Alan McKnight through Articles.GetACoder.com network. Here's the additional information: In order to trade in the stck market, one doesn't have to knw all of the technical details in bying and selling stocks, in most cses, a basic understanding of the stck market is more than enough. But due to the mount of information that one has to cnsider, stock trading requires a lot of tme and effort in order to bcome a profitable activity. Thanks to tchnology, the transfer and retrieval of sch information is so much easier. The Intrnet is a powerhouse of all srts of information and is accessible at all tmes. There are a lot of stes like http://www.marketinout.com on the Internet providing information and reports such as stock screening services, which help traders find trending stocks. Others provide volume trends and reports on which stocks have reached new highs and lows. Now, traders and investors no longer have to these trending manually as these online tools help automate reports, thereby allowing traders and investors find the best investment opportunities.

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