cryptocurrency investment terms we should know
Are you new to the investor world and wonder what some of these crazy terms mean or think you know but just want to brush up on some general knowledge well here we go.
Breakouts and breakdowns
These terms refer to a stock or crypto that breaks through previous resistance to the upside or support on the downside. If a stock or crypto's 200 day moving average was 3.00 a share or the 1 year high was 3.00 a share and it just hit 3.25 a share it is experiencing a breakout!
Resistance
Occurs when a stocks or cryptos price settles in an area where sellers usually emerge, preventing any further price increase.
If a stock or crypto is trading at lets say 10.00 per share, resistance at the 12.00 a share price point occur by a lot of sellers wanting to sell their shares around 12.00 in a short period of time, its considered a breakout as it broke through the resistance!
Support
is the same kind of thing except its on the downside. lets picture the stock or crypto at 12.00 again but the support is at 12.00. if it breaks bellow that 12.00 support floor, its pretty bearish. It should be able to hold support if the stock was going to move higher, but since it cracked through it is considerd very bearish.
Fundamentals
Judging a stock based on the company's business-meaning their revenue, profit, losses, and expectations moving ahead. This information would be used for investing and valuation.
Revenue
Is money received by a company for its goods or services. profits and losses are the positive or negative in the game from a business after subtracting expenses.
Moving Averages
Moving averages are basically the average price of a stock or crypto over different time periods e.g 5 day, 50 day, 200 day etc...if a stock or crypt is being traded over the 50day and 200day moving average that it is considered bullish because its got momentum (its moving). the stock is probably going up if its trading bellow the average or if it cracks bellow it is would be considered very bearish
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