What is the point of the graphs?

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07-12-2018 18:24

A picture is worth a thousand words...

Well, numbers can tell you all sorts of things but often you can glean more info by simply looking - a chart can show you what the share price has been doing.  Is it constantly rising or constantly falling? 

Does it go up and down like a Yoyo really rapidly or is this process stretched out over  time?

A stock that is continuing to rise looks like it could be a winner - the news articles will indicate whats going on and that could help decide if it's worth investing.

Yoyo'ing all over the place could be risky - a short term investment like this could drop in value very fast but equally rise in value very fast - you'd have to time your purchase to make the most of it

 Stock that is dropping in price is probably one to avoid - unless it's started to gain exposure again in which case perhaps it's time to buy low and sell high when it's price has gone back up.

Now - imagine looking at a sea of numbers and trying to come to the same conclusion...

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