🎓 Stock Trading Education - Learn the fundamentals of stock trading and how to use TradeVoice Lab effectively
A stock represents ownership in a company. When you buy a stock, you become a shareholder and own a small piece of that company.
The stock market is where buyers and sellers trade stocks. Prices change based on supply and demand.
NYSE, NASDAQ - where stocks are traded
9:30 AM - 4:00 PM ET (Monday-Friday)
Prices change based on buying/selling pressure
Technical analysis uses charts and indicators to predict future price movements based on historical patterns.
Average price over time. Shows trend direction.
Measures if stock is overbought (>70) or oversold (<30).
Shows momentum and trend changes.
Shows volatility and potential breakouts.
Support: Price level where buying pressure prevents further decline
Resistance: Price level where selling pressure prevents further rise
Evaluating a company's financial health and intrinsic value to determine if it's a good investment.
Price-to-Earnings ratio. Lower = potentially undervalued.
Company's profit divided by shares. Higher = better.
How fast the company is growing sales.
Company's debt vs equity. Lower = less risky.
Protecting your capital is more important than making profits. One big loss can wipe out months of gains.
Don't put all your money in one stock. Diversify across 5-10 stocks minimum.
Set a price where you'll sell to limit losses (typically 5-10% below entry).
Aim for at least 2:1 (risk $1 to make $2).
Spread risk across different sectors and asset classes.
Never risk more than 2% of your account on a single trade.
Example: $10,000 account → Max risk per trade = $200
Very short-term trades. High frequency, small profits.
Time Commitment: Full-time
Buy and sell within same day. No overnight risk.
Time Commitment: Full-time
Hold for several days to capture larger moves.
Time Commitment: Part-time
Long-term holds based on fundamentals.
Time Commitment: Minimal
Quick reference for terms, patterns, and metrics you'll see in TradeVoice Lab responses
Comprehensive annual financial report filed with SEC. Includes audited financials, business overview, risk factors, and management discussion.
Quarterly financial report (unaudited). Filed 3 times per year (Q1, Q2, Q3). Q4 is included in 10-K.
Filed for major events: earnings, mergers, CEO changes, bankruptcy, etc. Filed within 4 days of event.
Quarterly report of holdings by institutional investors ($100M+ AUM). Shows what hedge funds are buying/selling.
Reports insider buying/selling by executives and directors. Filed within 2 days of transaction.
Initial registration for companies going public. Contains business model, financials, and risk factors.
Formula: Stock Price ÷ EPS
Meaning: How much you pay for $1 of earnings. Lower = potentially undervalued.
Good: 15-25 (varies by industry)
Formula: Net Income ÷ Shares Outstanding
Meaning: Company's profit per share. Higher = better.
Formula: P/E Ratio ÷ Earnings Growth Rate
Meaning: P/E adjusted for growth. <1.0 = undervalued, >2.0 = overvalued.
Formula: Net Income ÷ Shareholder Equity
Meaning: How efficiently company uses equity. >15% = good.
Formula: Net Income ÷ Total Assets
Meaning: How efficiently company uses assets. >5% = good.
Formula: Total Debt ÷ Shareholder Equity
Meaning: Financial leverage. <1.0 = conservative, >2.0 = risky.
Formula: Current Assets ÷ Current Liabilities
Meaning: Short-term liquidity. >1.5 = healthy.
Formula: Operating Cash Flow - Capital Expenditures
Meaning: Cash available after expenses. Positive = good.
Formula: Stock Price × Shares Outstanding
Categories: Mega (>$200B), Large ($10-200B), Mid ($2-10B), Small (<$2B)
Range: 0-100
Overbought: >70 (potential sell)
Oversold: <30 (potential buy)
Neutral: 40-60
Components: MACD line, Signal line, Histogram
Bullish: MACD crosses above signal
Bearish: MACD crosses below signal
Common periods: 20, 50, 200 days
Golden Cross: 50-day > 200-day (bullish)
Death Cross: 50-day < 200-day (bearish)
Components: Middle (20-day SMA), Upper (+2 std dev), Lower (-2 std dev)
Squeeze: Bands narrow (low volatility, breakout coming)
Expansion: Bands widen (high volatility)
Meaning: Measures volatility
High ATR: Large price swings
Low ATR: Small price swings
Range: 0-100
Strong trend: >25
Weak trend: <20
Three peaks: left shoulder, head (highest), right shoulder. Neckline break = sell signal.
Target: Head height below neckline
Three troughs: left shoulder, head (lowest), right shoulder. Neckline break = buy signal.
Target: Head depth above neckline
Two peaks at similar level. Neckline break = sell signal.
Target: Peak-to-neckline distance below neckline
Two troughs at similar level. Neckline break = buy signal.
Target: Trough-to-neckline distance above neckline
Flat resistance, rising support. Breakout above resistance = buy.
Target: Triangle height above breakout
Flat support, falling resistance. Breakdown below support = sell.
Target: Triangle height below breakdown
U-shaped cup + small consolidation (handle). Breakout = buy.
Target: Cup depth above breakout
Strong uptrend (pole) + small downward consolidation (flag). Breakout = buy.
Strong downtrend (pole) + small upward consolidation (flag). Breakdown = sell.
Small body, long lower wick. Appears at bottom of downtrend.
Signal: Buyers rejected lower prices
Small body, long upper wick. Appears at top of uptrend.
Signal: Sellers rejected higher prices
Large green candle completely engulfs previous red candle.
Signal: Strong buying pressure
Large red candle completely engulfs previous green candle.
Signal: Strong selling pressure
3-candle pattern: red, small body (doji), large green.
Signal: Trend reversal from down to up
3-candle pattern: green, small body (doji), large red.
Signal: Trend reversal from up to down
Open = Close (or very close). Small/no body.
Signal: Market indecision, potential reversal
Three consecutive large green candles.
Signal: Strong uptrend continuation
Three consecutive large red candles.
Signal: Strong downtrend continuation
Cumulative volume indicator. Rising OBV = accumulation, Falling OBV = distribution.
Measures smart money flow. Rising = accumulation, Falling = distribution.
Range: -1 to +1
Bullish: >0.10 (buying pressure)
Bearish: <-0.10 (selling pressure)
Combines price and volume momentum. Rising = bullish, Falling = bearish.
Price level where buying pressure prevents further decline. Acts as a "floor".
Price level where selling pressure prevents further rise. Acts as a "ceiling".
Price moves above resistance or below support with increased volume.
Temporary price decline in an uptrend. Healthy consolidation.
Stock opens significantly higher/lower than previous close. Often on news.
Sideways price movement. Market "resting" before next move.
Price and indicator move in opposite directions. Signals potential reversal.
Measure of price fluctuation. High volatility = large swings, Low = small swings.
Ease of buying/selling without affecting price. High volume = high liquidity.
The better your question, the better the answer. Here's how to get the most out of TradeVoice AI:
You can combine multiple analyses in one question: